This is a guest post by Tasha Fairfield, Assistant Professor in the Department of International Development at the London School of Economics and Political Science, as part of the Duck of Minerva’s Symposium on Structural Power and the Study of Business. This post draws on ideas developed at greater length in Fairfield’s article found here. Links to other posts in the symposium can be found here.
Taxation is a policy area rife with examples from around the world of the substantial influence that business can wield. Consider Latin America, a region known for phenomenal inequality and light taxation of income and wealth (much like the United States in recent years). Business has been particularly successful at securing favorable tax legislation in Chile––business owners who comprise the top 1% receive upwards of 22% of national income but paid average effective tax rates of roughly 15% (compare to 24% in the US in 2004).