Political Economy Of Multi Level Tax Assignments In Latin American Countriesearmarked Revenue Versus Tax Autonomy
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Political Economy of Multi - Level Tax Assignments in Latin American Countries:Earmarked Revenue Versus Tax Autonomy
Author | : Giorgio Brosio |
Publisher | : International Monetary Fund |
Total Pages | : 32 |
Release | : 2008-03 |
Genre | : Business & Economics |
ISBN | : |
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A weakness of decentralization and overall tax reforms in Latin America is the lack of attention to adequate taxation at the subnational government. A reliance on shared taxes with extensive earmarking leads to weak subnational accountability and soft budget constraints. The paper explores the options for expanding subnational taxation in Latin America. A range of subnational tax instruments might be considered, but interactions between new tax assignments and the system of transfers is important from a political economy perspective.
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