Talk:Income inequality in Brazil
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Regarding tax rates
[edit]The section on taxation talks about the regressive nature of Brazil's tax system. However, I believe that the income tax is actually progressive. There is a caveat. Income taxes account for only 20% of tax revenue. Around 50% of it is from consumption taxes. The consumption taxes tend to tax basic goods that lower-incomes use, such as food stuffs, clothes, etc. The effect of this is a highly regressive tax system. I have included the paper that references this, and you can see the table where it shows the "effective" (emphasis, EFFECTIVE) tax rate.
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