Latin American inequality will work against wealth tax

Significance

The report proposes taxing large fortunes in order to enable much-needed investment in public services. LAC has the most unequal distribution of wealth of any world region: its two richest men have more wealth than the 334 million people that make up the poorest half of the population.

Impacts

• The region will be increasingly vulnerable to the intensifying effects of climate change as mitigation efforts go unfunded.
• Educational outcomes will remain poor for many people, hamstringing efforts to develop high-tech industries.
• Greater inequality will increase the risk of social unrest and disaffection with political parties and governments.