Article title next to a 3D image of a bag of money, coins and bills, with arrows in circles in the background indicating the tax cycle
Brazil is a country marked by significant social and economic inequality. In this context, the wealth tax (IGF) has been widely discussed among economists and legislators as a possible measure to combat this reality.
In 2022, the Brazilian Institute of Geography and Statistics (IBGE) revealed that the richest 1% of the Brazilian population has an average monthly income 32.5 times higher than the poorest half.
This scenario places Brazil in 14th place in the world ranking of social ukraine mobile database inequality, with a Gini coefficient of 48.9, tied with Congo. To understand the depth of this disparity , it is important to remember that the Gini coefficient is a measure of income concentration in which zero indicates perfect equality and 100 represents maximum inequality.
This reality places Brazil in a negative position on the global stage, encouraging debate on tax mechanisms that can balance the distribution of wealth. Below, we will explore the current context of this debate and the reasons that led the Chamber of Deputies to recently reject the proposal for a Tax on Large Fortunes.
Context of the tax on large fortunes in Brazil
The idea of establishing a tax on large fortunes in Brazil is not new. Provided for in article 153 of the 1988 Constitution, the IGF depends on a complementary law to be effectively implemented.
Several proposals have been floated over the years, but have met with strong resistance. One recent highlight came during Brazil’s G20 presidency , when Finance Minister Fernando Haddad proposed a global minimum tax of 2% on large fortunes.