Does Corruption Affect Tax Policies? Lessons From High-Performing Economies for Latin America
DOI:
https://doi.org/10.70577/q3a1zn43Keywords:
tax policy, economic growth, corruption, corporate income tax, personal income taxAbstract
Tax policies play a fundamental role in promoting economic growth; however, their effectiveness can be significantly undermined by corruption. In this context, this study aims to analyze the relationship between tax policies, specifically personal income tax and corporate income tax and corruption in countries with tax systems that foster economic growth, with the objective of identifying lessons applicable to Latin American nations. To achieve this objective, a mixed-methods approach was employed, combining a literature review based on Google Scholar, SciELO, Scopus, and Web of Science with a quantitative analysis of indicators from 30 developed and developing countries. To select the countries, a purposive sampling strategy was employed to include countries representing different levels of economic development and institutional quality. This approach enabled the comparison of tax policies and corruption across diverse economic contexts and facilitated the identification of lessons relevant to Latin American countries. The findings reveal that corruption substantially reduces the effectiveness of tax policies and that, beyond tax rates, the performance of a tax system depends largely on the quality of governance, institutional transparency, and public trust. Consequently, countries with lower levels of corruption achieve more efficient public resource management and stronger tax morale, enabling tax revenues to be translated into high-quality public goods and services and ultimately supporting more sustainable economic growth.
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