Governing inequality: tax perceptions, redistributive preferences, and expectations of the state among political elites in Mexico

To understand the lack of support for more progressive taxation in high-inequality contexts, we conducted interviews with 14 top-level politicians and civil servants in Mexico about their perceptions of inequality, their redistributive preferences, and the interconnection between the two. Participants come from all three levels of government and hold positions linked to tax policy. We find that they perceive inequality as high and undesirable but conflate it with poverty. They fail to link inequality reduction to taxation, focusing instead on improving public spending. Additionally, they propose solutions to inequality such as encouraging entrepreneurship, and adjusting the distribution of resources among different government levels. Most do not themselves use public services like education or health care and have ties to the business sector. Although they are part of the government, they do not trust it to use revenue appropriately. These perceptions stand in the way of progressive tax reform in Mexico and similar countries.