On April 12, the Inter-American Dialogue hosted an event titled “Latin America’s Digital Economy and Trends in International Taxation.” The discussion took place in the context of a recent OECD report, that reported that a global consensus on how to tax businesses with a substantial digital footprint but no physical presence in a given country remains elusive.
We conducted a fiscal impact study to estimate the effect of taxes, social spending, and subsidies on inequality and poverty in El Salvador, using the methodology of the Commitment to Equity project.
How much do the Western Hemisphere’s two largest economies and most populous countries, Brazil and the United States, redistribute through social spending and taxes? Although the United States has an income per capita four times as large as Brazil’s, the countries share similarities that make this comparison interesting.
Nora Lustig, Sean Higgins, Whitney Ruble, Timothy Smeeding