They advocate that Latin American countries work together to implement progressive tax reforms

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The Independent Commission for the Reform of International Corporate Taxation (ICRICT)considered it urgent that Latin American countries invest in robust, inclusive and sustainable public services, “because it is the most powerful instrument available to governments to fight poverty and inequality.”

One year after 140 countries signed an agreement under the mandate of the G20 and the OECD, ICRICT believes that it is a step in the right direction, but not very ambitious and unfavorable for emerging and developing countries, and that the situation has not changed.

He indicated that due to various internal political problems in rich countries, the application of the agreement is at a standstill.

“It is crucial that States increase their ability to raise sufficient resources through bold and progressive fiscal measures, which take into account the needs of the most vulnerable, and in particular women and children. Therefore, the ICRICT urges countries not to wait for the implementation of the agreement. They should consider their own alternative measures to be applied actively and without delay. The negotiation process of the last few years also showed that any movement would have much more strength if it is coordinated at the regional level,” he said in a press release.

The commission said that in Colombia Y Chili They are already showing the way, with proposals for progressive tax reforms to strengthen the income tax, introduce a wealth tax and strengthen the taxation of dividends, seeking greater tax justice as the main objective.

“The ICRICT calls for more cooperation among the countries of the region to adopt more progressive fiscal policies that end record inequality in Latin America. It is also through coordination that they will be able to better defend the interests of the region, and of developing countries in general, in global negotiation spaces,” he points out.

Magdalena Sepulvedaexecutive director of Global Initiative for Economics, social and cultural rights and member of the ICRICT He said that the people who are bearing the most severe effects of the current cost of living crisis are the most vulnerable and disadvantaged in society, such as women, children, the elderly, people with disabilities, indigenous peoples, ethnic minorities and immigrants.

We need progressive tax policies now, with a green and feminist approach. Public resources cannot continue to depend on regressive fiscal policies,” said

He considered that it is urgent to tax wealth and corporate super-profits, in order to redistribute, finance inclusive quality public services and counteract unacceptable levels of hunger, extreme poverty and inequality.

Likewise, Ricardo Martner, former head of the Fiscal Affairs Unit of the Economic Commission for Latin America and the Caribbean (Cepal), indicated that countries around the world are facing increasing financial difficulties to face the challenges of pandemic, the exploding cost of living, inequality and the climate crisis.

“It is time that Latin American countries also show their ability to unite and work together for more progressive taxation. The answer does not lie in intensifying competition between countries. We need a regional fiscal pact that allows us to fight poverty and inequalities, and for our voices to be heard more”.

While, Joseph StiglitzNobel laureate in economics and co-chairman of ICRICT He said that for decades, the public sector has lost resources, not only in developing countries. “The tax structures we have today are not progressive and in some countries they are even regressive. This causes a lot of resentment, undermines our democracy and our solidarity”

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They advocate that Latin American countries work together to implement progressive tax reforms