Governments tax to fund public services, traditionally balancing collection efficiency and equity. However, in Latin America and the Caribbean (LAC), this report expands the debate by incorporating taxpayer behavioral responses, technological advancements, and the critical goal of economic growth – an area where LAC consistently underperforms. Core taxes like VAT, PIT, CIT, and Wealth Tax form the bulk of government revenue. While LAC heavily relies on VAT and CIT, weak enforcement and large informal sectors often force a trade-off between revenue and equity.