This contribution by Juan Carlos Gómez Sabaíni, Bruno Martorano and Dalmiro Morán features in the World Social Science Report 2016. Latin American policy-makers and society have become increasingly aware of the problems caused by inequality. Although this phenomenon has distant colonial origins and prevails thanks to the resistance of traditional and new elites, the consolidation of democracy during the 1990s and 2000s has encouraged several governments to correct some of these problems by promoting moderate fiscal reforms. Since most studies have focused on the distributive impact of social expenditure and income transfers, this contribution aims to complement these analyses by examining how favourable changes in taxation have contributed to the recent decline in income inequality observed throughout the region.