SUMMARY
In recent years Mexico has had the lightest tax burden
in Latin America. Using qualitative, historical
analysis, this paper argues that a crucial cause of
this phenomenon is the resistance of an exceptionally
politically mobilized economic elite, which
has resulted in the defeat or dilution of repeated
attempts at reform. The intensity of elite resistance
reflects, in turn, a strongly anti-state ideology constructed
through conflict with the state, especially
during the 1930s. This emphasis on the historical
construction of preferences clarifies a central paradox
of the literature on Latin American taxation:
the fact that a number of authors agree that elite
cohesion and political connections are important,
but disagree on whether they hinder or facilitate
revenue-raising reform.