Taxes and Institutional Quality: A Challenge for Latin-American Juridical Sociology

Abstract

Latin America's main challenge lies in finding a way to address social fragmentation, extreme individualism, and egregious inequalities while maintaining absolute respect for institutions. The State still possesses two formidable tools: education and the tax system. Emphasizing compliance with tax obligations is crucial in fostering civic awareness, which, in turn, underpins higher-quality institutions. And, in a kind of circular causality, the proper functioning of institutions legitimizes the demand for tax compliance from citizens who, in turn, become increasingly aware of the duties and rights inherent in their citizenship. To understand how these processes can unfold in the region, a new discipline is needed: the sociology of public finance.