Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/298108 
Year of Publication: 
2023
Series/Report no.: 
Discussion Paper No. 275
Publisher: 
Institute for Applied Economic Research (ipea), Brasília
Abstract: 
This paper examines the evolution of the redistributive role of the State in Brazil at the beginning of the 21st century. For this purpose, we compute the marginal effects of the cash transfers, taxes, and in-kind benefits on inequality using the Lerman-Yitzhaki progressivity index. Our main results are: i) the Brazilian tax system as a whole remains regressive, with heavily regressive indirect taxes and slightly progressive direct taxes; however, ii) the expansion of social spending in this period introduced significant progressive gains, leading to an iii) increase in the redistributive role of the State and to a net reduction in the final income Gini index by 15.9%. We conclude by arguing that further advancements towards a more progressive tax system could be achieved by reducing the weight of indirect taxes and increasing the taxation of the richest.
Subjects: 
fiscal redistribution
cash transfers
taxation
in-kind benefits
income inequality
JEL: 
D31
H22
I3
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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