How do the Tax Burden and the Fiscal Space in Latin America look like? Evidence through Laffer Curves

How much fiscal space do Latin American countries have to increase their tax burdens in the long term? This paper provides an answer through Laffer curves estimates for taxes on labor, capital, and consumption six largest emerging economies of region: Argentina, Brazil, Chile, Colombia, Mexico, Peru. Estimates are made using a neoclassical growth model with second-generation human capital employing data from national accounts system period 1994 2017. Our findings allow us compare recent effective rates factor returns against those which would maximize government's revenues, therefore derive potential tax-related space. Results suggest that joint labor reach 6.5% GDP region, average, there important differences among countries.