Author:Rodrigo Cardoso Fernandes, Bernardo Campolina, Fernando Gaiger Silveira
Financial Policies, Poverty and Inequality

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Abstract: "Income inequality has been one of Brazil's most significant socioeconomic characteristics throughout its history. Although there has been a significant reduction since the end of the 1990s, its persistence and magnitude are still internationally notorious. This One Pager seeks to synthesise the results of a study relating Brazilian inequality with its tax system, whose regressive nature must be overcome to enable a more egalitarian society. The Brazilian tax system places undue emphasis on indirect taxes—which comprise over 51 per cent of its gross tax burden. The country’s insistence on taxes on goods and services (indirect taxes)—to the detriment of taxes on income and property (direct taxes)—undermines the real application of the principle of contributive capacity, resulting in a regressive system whereby families with less income proportionally finance a larger share of the State". (...)

keywords: Distributive, impact, income, taxes, Brazil
Date Publication: 07/06/2018 - 08:16
Type/Issue: One Pager / 394
ISSN: 2318-9118
Language: English