Policy recommendations POLICY RECOMMENDATIONS The fragility of information concerning wealth inequality in Brazil translates into a need for official data producers, such as the Brazilian Institute of Geography and Statistics( Institu­to Brasileiro de Geografia e Estatística , or IBGE), in coopera­tion with other government institutions, to provide statistics on the distribution of wealth in the country. Such an en­deavour is a crucial step in the further development and re­finement of future research, and essential if better-informed public policies are to be implemented. Still, there is plenty of evidence that the Brazilian tax system reinforces existing structural inequalities. As is known, tax revenues as a percentage of GDP(the tax-to-GDP ratio) are comparable to the OECD countries’ average: 33.1 per cent and 34.1 per cent, respectively, in 2021(Tesouro Nacional, 2022; OECD, 2022). However, the composition of Brazilian taxes is extremely regressive, since the system is heavily de­pendent on indirect taxes. The latter account for 45 per cent of tax revenues, in contrast to a 32 per cent share for OECD countries(Silveira et al., 2022). Hence the importance of a tax reform that increases the share of direct taxes. A pro­gressive tax reform should guarantee that people with the same capacity to pay are taxed to the same extent. As we have seen, the inability to observe such a principle of hori­zontal equity reproduces racial inequality and white privi­lege, since black men at the top end up being overtaxed rel­ative to white men. Besides, a progressive tax reform is sup­posed to increase the tax burden on the rich, reducing the weight at the bottom of the distribution structure in terms of the tax burden and, therefore, respecting the principle of vertical equity. In this respect, the small role played by direct taxes in tax revenues is an indication that there is considera­ble latitude for such an increase. – an increase in the maximum marginal rate for the inher­itance and gift tax(ITCMD) from 8 per cent to 30 per cent, with incremental progressive rates of 5 percent­age points 14 ; – an overall change in the composition of tax revenues, reducing the weight of taxes on consumption and in­creasing the weight of direct taxes. – the adoption of a 2 per cent tax rate on wealth for the super-rich, i. e. the 0.2 per cent at the top of Brazilian income distribution pyramid. It is worth noting that the last recommendation implies a comprehensive understanding of the tax system, and points to the importance of a reform that simultaneously considers modifications to income and consumption taxes. A reform of indirect taxes is currently taking place in Brazil, but the political debate is unfortunately not expanding into a broad­er discussion, which is unfortunate considering the urgent need for a reform of direct taxes. Moreover, the potential positive effects of such a reform in terms of economic growth and a possible expansion of tax revenues might be hindered by the recent approval of a new fiscal framework imposing severe constraints on government spending and, hence, the public provision of goods and services. This rare opportunity to transform Brazilian historical and structural inequalities should be seized. Thus, in view of the foregoing, we recommend: – the adoption of a new marginal tax rate of 35 per cent, levied on the top 1 per cent of the income distribution structure; – the adoption of a tax rate on distributed profits and dividends between 15 per cent and 20 per cent; – the broadening of the corporate taxation base, includ­ing a review of the simplified taxation regimes for small and medium-sized enterprises; 14 As Pires(2022) has suggested. 11