O uso insuficiente da tributação progressiva sobre renda e propriedade e as desigualdades brasileiras

Abstract

Despite significant public spending efforts, Brazil remains one of the most unequal countries in the world, with a high concentration of income and wealth among the wealthiest individuals. Based on this premise, this research examines how the insufficient application of progressive taxation on income and property has contributed to persistent inequalities in the country. Under the framework established by the 1988 Federal Constitution, taxation should not be viewed solely as a means of generating state revenue but also as an instrument of political and social intervention. Taxes, both fiscal and extrafiscal, should serve to achieve constitutional objectives, including the redistribution and deconcentration of income and wealth. However, despite the constitutional mandate prioritizing the reduction of inequalities, the design and structure of the Brazilian tax system have failed to support this goal. The system is primarily based on indirect taxation, while direct taxes suffer from structural deficiencies that undermine their revenue-generating and redistributive functions. Furthermore, income and property taxes have, in some cases, exacerbated economic disparities. Through bibliographic and documentary analysis, this research adopts a descriptive, explanatory, and exploratory approach to identify deficiencies in the progressive incidence of income and property taxation and their connections to inequality. The findings indicate that, although the personal income tax (IRPF) is formally progressive, it has functioned regressively in practice. The IRPF is characterized by low marginal rates, numerous exemptions and deductions, and preferential treatment for capital income, all of which have eroded the tax base and weakened its progressivity. Additionally, property taxation has historically played a minimal role in Brazil’s tax structure. Low tax rates, proportional levies, and issues concerning the tax base have been the defining characteristics of property-related taxes over time. Taxes such as the Rural Land Tax (ITR), Transfer Tax on Real Estate (ITBI), and Motor Vehicle Tax (IPVA) continue to employ proportional rates, while the Estate and Gift Tax (ITCMD) and the Property Tax (IPTU) have yet to be fully progressive. These deficiencies have led to weak progressivity, low revenue performance, and limited redistributive potential, with some even producing regressive outcomes. Ultimately, the research concludes that the inadequate use of progressive taxation on income and property not only prevents these taxes from serving as effective tools for reducing inequality but also actively contributes to the concentration of income and wealth among Brazil’s richest individuals.