Rethinking Taxation to Protect Savings

Taxation and savings are inextricably linked. While taxation puts more money in the government’s hands, it also decreases private savings by leaving people and firms with less income to save, invest, and grow the economy. Despite this clear relationship, the negative impact of taxation on private savings is often the blind spot when policymakers tackle […]

The Problem with Taxing the Rich

It’s never easy to get the wealthy to pay their taxes — and Latin America is no exception. Not only do they have the political clout to fight legislation that would increase their contributions relative to low-earners. They can afford top-flight lawyers and accountants to help them maneuver around their income taxes through loopholes and […]

The Do’s and Don’ts of “Nudging”

How can governments guide people to make choices that would improve their  welfare? Traditionally, the focus has been on changing prices; for instance, higher cigarette taxes encourage people to smoke less. Lately, “nudges” have become a favorite tool, and are becoming increasingly popular  in developed and developing countries alike. Latin American governments are no exception […]

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