Average Tax Rates On Consumption And Factor Income In Brazil 2000q1-2022q4

Abstract

The aim of this paper is to calculate average effective macroeconomic tax rates levied on consumption, labor income, and capital income for the Brazilian economy using data on tax revenue and national accounts for the period from 2000 to 2022. We follow the methodology proposed by Mendoza, Razin & Tesar (1994) , and other that is based ond the adjust on income distribution proposed by Gollin (2002). Both allows estimating those tax rates consistently with the distortionary taxation faced by the representative agent in a general equilibrium framework. We apply temporal disaggregation techniques in order to get those tax rates also on quarterly basis. The results show that taxation in Brazil burdens especially labor income and  consumption.