Simulating the impact of inflation on the progressivity of personal income tax in Brazil

Detalhes bibliográficos
Autor(a) principal: Levy, Horacio
Data de Publicação: 2010
Outros Autores: Nogueira, José Ricardo, Siqueira, Rozane Bezerra, Immervoll, Herwig, O'Donoghue, Cathal
Tipo de documento: Artigo
Idioma: por
eng
Título da fonte: Revista Brasileira de Economia (Online)
Texto Completo: https://periodicos.fgv.br/rbe/article/view/1185
Resumo: Income tax reform in Brazil has mainly stressed changes in rates, aiming at increasing its progressivity. One aspect frequently overlooked is that, in the absence of adjustments of the tax rules to inflation, the level and distribution of the income tax burden can be substantially affected. We use a microsimulation model to simulate the potential revenue and distributive effects of inflation on the income tax in Brazil. Our findings suggest that if the income tax is not adjusted for inflation, progressivity would decrease but redistribution would increase due to a larger tax burden, but income inequality would not substantially change.
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spelling Simulating the impact of inflation on the progressivity of personal income tax in BrazilSimulating the impact of inflation on the progressivity of personal income tax in BrazilIncome TaxInflationProgressivityRedistributionLatin AmericaBrazilIncome tax reform in Brazil has mainly stressed changes in rates, aiming at increasing its progressivity. One aspect frequently overlooked is that, in the absence of adjustments of the tax rules to inflation, the level and distribution of the income tax burden can be substantially affected. We use a microsimulation model to simulate the potential revenue and distributive effects of inflation on the income tax in Brazil. Our findings suggest that if the income tax is not adjusted for inflation, progressivity would decrease but redistribution would increase due to a larger tax burden, but income inequality would not substantially change.No Brasil, reformas do imposto de renda têm enfatizado mudanças nas alíquotas, objetivando o aumento de sua progressividade. Um aspecto freqüentemente desconsiderado é que, na ausência de ajustamentos das regras do imposto em relação à inflação, o nível e distribuição da carga do imposto podem ser substancialmente afetados. Utilizamos um modelo de microssimulação para estimar os potenciais efeitos distributivos e arrecadatórios da inflação sobre o imposto de renda no Brasil. Os resultados sugerem que não ajustando o imposto de renda de acordo com a inflação, sua progressividade diminui e seu efeito distributivo aumenta. Entretanto, a desigualdade de renda não muda significativamente.EGV EPGE2010-12-07info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionArticlesArtigosapplication/pdfapplication/pdfhttps://periodicos.fgv.br/rbe/article/view/1185Revista Brasileira de Economia; Vol. 64 No. 4 (2010); 405-422Revista Brasileira de Economia; v. 64 n. 4 (2010); 405-4221806-91340034-7140reponame:Revista Brasileira de Economia (Online)instname:Fundação Getulio Vargas (FGV)instacron:FGVporenghttps://periodicos.fgv.br/rbe/article/view/1185/1921https://periodicos.fgv.br/rbe/article/view/1185/2002Levy, HoracioNogueira, José RicardoSiqueira, Rozane BezerraImmervoll, HerwigO'Donoghue, Cathalinfo:eu-repo/semantics/openAccess2010-12-07T19:16:50Zoai:ojs.periodicos.fgv.br:article/1185Revistahttps://periodicos.fgv.br/rbe/https://periodicos.fgv.br/rbe/oai||rbe@fgv.br1806-91340034-7140opendoar:2024-03-06T13:03:01.909404Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)true
dc.title.none.fl_str_mv Simulating the impact of inflation on the progressivity of personal income tax in Brazil
Simulating the impact of inflation on the progressivity of personal income tax in Brazil
title Simulating the impact of inflation on the progressivity of personal income tax in Brazil
spellingShingle Simulating the impact of inflation on the progressivity of personal income tax in Brazil
Levy, Horacio
Income Tax
Inflation
Progressivity
Redistribution
Latin America
Brazil
title_short Simulating the impact of inflation on the progressivity of personal income tax in Brazil
title_full Simulating the impact of inflation on the progressivity of personal income tax in Brazil
title_fullStr Simulating the impact of inflation on the progressivity of personal income tax in Brazil
title_full_unstemmed Simulating the impact of inflation on the progressivity of personal income tax in Brazil
title_sort Simulating the impact of inflation on the progressivity of personal income tax in Brazil
author Levy, Horacio
author_facet Levy, Horacio
Nogueira, José Ricardo
Siqueira, Rozane Bezerra
Immervoll, Herwig
O'Donoghue, Cathal
author_role author
author2 Nogueira, José Ricardo
Siqueira, Rozane Bezerra
Immervoll, Herwig
O'Donoghue, Cathal
author2_role author
author
author
author
dc.contributor.author.fl_str_mv Levy, Horacio
Nogueira, José Ricardo
Siqueira, Rozane Bezerra
Immervoll, Herwig
O'Donoghue, Cathal
dc.subject.por.fl_str_mv Income Tax
Inflation
Progressivity
Redistribution
Latin America
Brazil
topic Income Tax
Inflation
Progressivity
Redistribution
Latin America
Brazil
description Income tax reform in Brazil has mainly stressed changes in rates, aiming at increasing its progressivity. One aspect frequently overlooked is that, in the absence of adjustments of the tax rules to inflation, the level and distribution of the income tax burden can be substantially affected. We use a microsimulation model to simulate the potential revenue and distributive effects of inflation on the income tax in Brazil. Our findings suggest that if the income tax is not adjusted for inflation, progressivity would decrease but redistribution would increase due to a larger tax burden, but income inequality would not substantially change.
publishDate 2010
dc.date.none.fl_str_mv 2010-12-07
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Articles
Artigos
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://periodicos.fgv.br/rbe/article/view/1185
url https://periodicos.fgv.br/rbe/article/view/1185
dc.language.iso.fl_str_mv por
eng
language por
eng
dc.relation.none.fl_str_mv https://periodicos.fgv.br/rbe/article/view/1185/1921
https://periodicos.fgv.br/rbe/article/view/1185/2002
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv EGV EPGE
publisher.none.fl_str_mv EGV EPGE
dc.source.none.fl_str_mv Revista Brasileira de Economia; Vol. 64 No. 4 (2010); 405-422
Revista Brasileira de Economia; v. 64 n. 4 (2010); 405-422
1806-9134
0034-7140
reponame:Revista Brasileira de Economia (Online)
instname:Fundação Getulio Vargas (FGV)
instacron:FGV
instname_str Fundação Getulio Vargas (FGV)
instacron_str FGV
institution FGV
reponame_str Revista Brasileira de Economia (Online)
collection Revista Brasileira de Economia (Online)
repository.name.fl_str_mv Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)
repository.mail.fl_str_mv ||rbe@fgv.br
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