Abstract:"Brazil is a notable case of high fiscal income inequality coexisting with a weak regulatory personal income tax. These findings are a clear reflection of the separation of incomes in the country for fiscal purposes. As one moves up in the pre-tax fiscal income distribution, it is the sources of income received that matter most for the individual tax burden (Morgan, 2017). And such a fiscal separation of income can have a positive feedback on pre-tax income inequality. Figure 1 shows the different average effective tax rates applying on different categories of income in Brazil in 2015". (...)

Keywords:Elite, taxation, rent-seeking, income, inequality, Brazil

Publication Date:16 February 2018

Type/Issue:One Pager/375

ISSN:2318-9118