Impactos da tributação e do gasto social sobre as desigualdades sociais no Brasil: Pof 2017-2018

Abstract

The main objective of this study is to evaluate the impact of taxation (direct and indirect) and social spending (cash transfers and public spending on health and education) on social inequalities in Brazil. Therefore, based on the 2017/2018 POF, an investigation was carried out into the composition and incidence of each of these fiscal policy components according to the varied population income strata and, subsequently, the effect that these exert on the income concentration indicator (Gini coefficient). The results obtained point to a significant redistributive effect of direct transfers, with a drop of almost 8% in income concentration, while the regressiveness of indirect taxes, compared to the low progressivity of direct taxes, resulted in a tax system with a concentrating effect. On the other hand, the public provision of health and education services proved to be the most effective in reducing social inequality, resulting in a reduction close to 20% in the Gini index. Finally, the need for a tax reform based on fiscal justice is highlighted in order to correct the concentrating profile of taxation and implement a social development project, concurrently with the State's ability to finance, promote and strengthen social spending.