In paragraph 68, the bishops make a brief account of the reasons they see as limiting the funds available for government projects.
Although a great deal of progress has been made in controlling inflation and in the macroeconomic stability of the countries of the region, many governments are severely limited in financing their public budgets by the high costs of the foreign and domestic debt, and yet, at the same time, they do not have truly efficient, progressive, and equitable tax systems.
The bishops see some progress in controlling the inflation that seriously affected much of the continent.
In addition, because of international efforts at the turn of the century, there have been major efforts to diminish the international debt of many nations, but there are still serious issues of debts.
But the bishops also note the lack of “efficient, progressive, and equitable tax systems.”
In Honduras, for example, the tax on purchases has recently been raised to 15%. However, the government has made major tax concessions for some large companies, including those who have major food franchises, such as Wendy’s. In addition, the mining industry’s tax rate is 2%. Far from efficient and far from equitable.