ECONOMY AND FINANCE INEQUALITY IN BRAZIL Income, Wealth and Tax Distribution Research Center on Macroeconomics of Inequalities(Made) June 2024 The authors explore Brazil’s multidimensional social in­equalities that have strong regional, gender and, most im­portantly, racial aspects con­nected to historical social pow­er relations and exploitation. The Brazilian tax system is markedly regressive. Labour is disproportionately taxed in comparison to capital and the widespread use of consump­tion taxes disproportionately burdens low-incomes. The au­thors argue that a progressive tax reform should seek to eliminate such disparities by eliminating privileges granted to the rich by the state. The government of president Lula has promised to reform taxation of the super-rich and is being supported by civil so­ciety in an active campaign. Brazil has put the creation of a minimum global tax rate on billionaires on the G20 agenda. An excise tax of two per cent is estimated to gene­ rate almost R$ 42 billion in taxes in a year.