Property Threats and the Politics of Anti-Statism

Tax revenues have risen robustly across Latin America in recent decades, casting doubt on the region's reputation for having states too poor to finance economic and social development. However, dramatic differences persist in the magnitude of national tax burdens and public sector size, even among seemingly similar countries. This book examines the historical roots of this variation. Through in-depth case studies of Argentina, Brazil, Chile, and Mexico, as well as evidence from Ecuador and Guatemala, Ondetti reveals the lasting impact of historical episodes of redistributive reform that threatened property rights. Ironically, where such episodes were most extensive, they hindered future taxation by prompting economic elites and social conservatives to mobilize politically against state intervention, forming peak business associations, rightist parties, and other formal and informal organizations that have proven to be remarkably enduring.

'Property Threats and the Politics of Anti-Statism advances a sophisticated argument highlighting the long-lasting consequences of major government-led redistributive efforts for contemporary tax burdens. Based on a thoughtful research design and impressive field research in Argentina, Brazil, Chile, and Mexico, Ondetti shows how business' opposition to heavier taxation is not homogeneous, but rather contingent on early threats to private property rights. By bringing much needed historical nuance to the study of taxation, this book is a must read for those interested in the political economy of development.' Gustavo A. Flores-Macías, Cornell University, 'Facile generalizations about Latin America stumble on the fact that its two largest countries differ greatly on something citizens everywhere care about: the size of the government. In this careful and well-crafted work, Ondetti shows how a narrow but important question can illuminate fundamental divergences in political history.' Jim Mahon, Williams College, 'This book is an essential contribution to our understanding of tax systems. Ondetti traces the politics of redistribution and elite reaction to explain why some Latin American countries built fiscal capacity while others did not. In times of unprecedented inequality, progressives can learn lessons relevant to overcoming elite opposition to paying their fair share.' Aaron Schneider, University of Denver

Gabriel Ondetti is Professor of Political Science at Missouri State University. He is the author of Land, Protest and Politics: The Landless Movement and the Struggle for Agrarian Reform in Brazil (2008).