Pesos or Plastic? Financial Inclusion, Taxation, and Development in

The book covers financial inclusion in the southern cone (Argentina, Brazil, and Chile) and its impact on public finance. Possible negative consequences of greater financial inclusion are identified, but the book argues potential benefits outweigh costs.

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Ken Mitchell Robert H. Scott, III

Pesos or Plastic?

Ken Mitchell · Robert H. Scott, III

Pesos or Plastic? Financial Inclusion, Taxation, and Development in South America

Ken Mitchell Department of Political Science and Sociology Monmouth University West Long Branch, NJ, USA

Robert H. Scott, III Department of Economics, Finance and Real Estate Monmouth University West Long Branch, NJ, USA

ISBN 978-3-030-14875-1 ISBN 978-3-030-14876-8  (eBook) https://doi.org/10.1007/978-3-030-14876-8 Library of Congress Control Number: 2019933317 © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2019 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Palgrave Pivot imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

To Brielle, Ava, Alex and Luli

Acknowledgements

This book would not have been possible without the generous support of Monmouth University. The authors wish to thank Steve Pressman, Phil Howard and Sam Maynard for comments on early drafts of Chapters 2 and 3—of course, all mistakes and errors are the sole responsibility of the authors. Tula Weis and Ruth Noble, at Palgrave, shepherded this project from start to finish and the authors extend their sincere appreciation for overseeing an efficient and organized publication process.

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Contents

1 Financial Inclusion and the Middle of the Pyramid, a New Public Revenue Strategy for the Twenty-First Century 1 2 Public Revenue, Financial Inclusion and Value-Added Tax in Argentina 33 3 Financial Inclusion and Value-Added Taxes in Argentina, Brazil and Chile 59 Conclusion 85 Index 89

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List of Figures

Fig. 2.1 Fig. 2.2 Fig. 2.3 Fig. 2.4

Fig. 2.5

Fig. 2.6

Fig. 3.1

Government spending-to-GDP for Argentina, Brazil