César Morales Oyarvide in Phenomenal World:
In his famous 1918 essay “The Crisis of the Tax State,” Joseph Schumpeter captured the essence of fiscal sociology, arguing that “The spirit of a people, its cultural level, its social structure, the deeds its policy may prepare—all this and more is written in its fiscal history … He who knows how to listen to its message here discerns the thunder of world history more clearly than anywhere else.” In Mexico, however, this principle seems to have been suspended. There the Schumpeterian thunder is not heard. The project of the Fourth Transformation (4T), launched by Andrés Manuel López Obrador in 2018 and passed down to Claudia Sheinbaum Pardo last year, has sought to reorganize domestic political power, and it has had considerable success—…
César Morales Oyarvide in Phenomenal World:
In his famous 1918 essay “The Crisis of the Tax State,” Joseph Schumpeter captured the essence of fiscal sociology, arguing that “The spirit of a people, its cultural level, its social structure, the deeds its policy may prepare—all this and more is written in its fiscal history … He who knows how to listen to its message here discerns the thunder of world history more clearly than anywhere else.” In Mexico, however, this principle seems to have been suspended. There the Schumpeterian thunder is not heard. The project of the Fourth Transformation (4T), launched by Andrés Manuel López Obrador in 2018 and passed down to Claudia Sheinbaum Pardo last year, has sought to reorganize domestic political power, and it has had considerable success—redefining the national narrative and restructuring public spending priorities. Yet it has not significantly altered the tax structure built by previous governments.
This fiscal silence is even more surprising in light of the experiences of other leftist administrations in Latin America. In Bolivia, Evo Morales combined strategic nationalizations with an aggressive expansion of the fiscal apparatus. In Brazil, successive PT governments broadened the tax base while transferring income to the poorest citizens. Despite grappling with high levels of informality and low trust in state institutions, these projects understood that without new resources, it would be impossible to create new social rights. The 4T, by contrast, has tried to square the circle of distribution without serious tax reform.
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