Optimal taxation of top incomes in Brazil: tax rates and simulations for 2020
Keywords:
Optimal taxation, Capital income, InequalityAbstract
This article calculates the optimal marginal rates for the highest incomes for taxation of labor income, capital income and total income in Brazil. These estimates are important, especially because in the country there is a strong concentration of capital income in the Top 1%, much more than in labor income, and even so, a good part of this income is not taxed, such as profits and dividends. The results indicate that our estimates rates are much higher than what occurs in practice in Brazil, with the possible exception of labor income.
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Copyright (c) 2024 Nelson Leitão Paes
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