WEALTH TAX IN BRAZIL: PROPOSALS AND SIMULATIONS

ABSTRACT

Brazil is the only country among the 20 richest and the 20 most unequal. It has one of the largest income redistribution programs in the world, Bolsa Família, but also one of the most unjust tax burdens. Taxation and economic inequality are two of the most important issues in developing countries. In a situation of economic stagnation, the government prioritized cutting expenses as a measure of fiscal balance. This paper aims to analyze the implementation of a Wealth Tax, its feasibility and tax collection by simulation with data from tax declarations. It is shown that the Wealth Tax is feasible, has a solid revenue and could be used as an instrument of fiscal justice. It could also help with fiscal equilibrium instead of other austerity measures such as cuts in expenses of essential sectors to the economic growth and well-being of Brazil.

KEYWORDS:
tax burden; inequality; taxation; wealth tax; Brazil