Fiscal Policy, Wealth and Income Distribution
Consensus establishes that fiscal policy is the main instrument to improve income distribution; however, few are the works that focus on the evaluation of how such policy can also generate greater inequality in the distribution of income, wealth and economic and political power, not only between persons but also between companies and industries. The process of economic globalization and international financial instability have accelerated this phenomenon, and imposing to the governments straitjackets that prevent achieving economic and social objectives of the welfare.
Behind all, underlying structural change policies that have changed the legal frameworks and institutions in favor of elites.
The purpose of this document is to establish briefly how the positive effects of income distribution of fiscal policy have been declining in OECD countries and especially in Mexico, and, contrary to expectations, have favored social inequality and economic exclusion of broad sectors of the population. To check, use the database of the OECD by statistical analysis using variables such as fiscal cost, participation in total revenues by type of tax, industry and economic agents, when the available information permits.