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Effective Tax Rates on Consumption and Factor Incomes: a quarterly frequency estimation for Brazil

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  • Cyntia Freitas Azevedo
  • Angelo Marsiglia Fasolo

Abstract

This paper estimates time series of effective tax rates for consumption and factor incomes for Brazil, following the spirit of Mendoza et al (1994). The procedure to generate quarterly estimates of the tax base, using microdata from populational surveys, and the tax revenues seems to be appropriate, despite its simplicity, as the time series of the tax burden and the effective tax rates are in line with the historical Brazilian experience on fiscal policy. The estimated tax burden identifies a positive trend over time, despite the partial interruption after the international crisis in 2008. The paper also provides preliminary evidence on the properties of the computed effective tax rates and their relation with the business cycles.

Suggested Citation

  • Cyntia Freitas Azevedo & Angelo Marsiglia Fasolo, 2015. "Effective Tax Rates on Consumption and Factor Incomes: a quarterly frequency estimation for Brazil," Working Papers Series 398, Central Bank of Brazil, Research Department.
  • Handle: RePEc:bcb:wpaper:398
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    References listed on IDEAS

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    1. Bjørn Volkerink & Jan-Egbert Sturm & Jakob de Haan, 2002. "Tax Ratios in Macroeconomics: Do Taxes Really Matter?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 29(3), pages 209-224, September.
    2. Gomes, Victor & Bugarin, Mirta N. S. & Ellery-Jr, Roberto, 2005. "Long-run Implications of the Brazilian Capital Stock and Income Estimates," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 25(1), May.
    3. Mendoza, Enrique G. & Razin, Assaf & Tesar, Linda L., 1994. "Effective tax rates in macroeconomics: Cross-country estimates of tax rates on factor incomes and consumption," Journal of Monetary Economics, Elsevier, vol. 34(3), pages 297-323, December.
    4. Fabia A. de Carvalho & Marcos Valli, 2011. "Fiscal Policy in Brazil through the Lens of an Estimated DSGE Model," Working Papers Series 240, Central Bank of Brazil, Research Department.
    5. Nogueira, José Ricardo & Siqueira, Rozane Bezerra de & de Souza, Evaldo Santana, 2001. "A Incidência Final dos Impostos Indiretos no Brasil: Efeitos da Tributação de Insumos," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 55(4), October.
    6. Rodrigo Octávio Orair & Sergio Wulf Gobetti & Ésio Moreira Leal & Wesley de Jesus Silva, 2013. "Carga Tributária Brasileira: Estimação e Análise dos Determinantes da Evolução Recente - 2002 - 2012," Discussion Papers 1875, Instituto de Pesquisa Econômica Aplicada - IPEA.
    7. Claudio Monteiro Considera & Samuel de Abreu Pessoa, 2013. "A distribuição funcional da renda no Brasil no período 1959-2009," Pesquisa e Planejamento Econômico - PPE, Instituto de Pesquisa Econômica Aplicada, vol. 43(3), pages 479-512, dez..
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    Cited by:

    1. Fasolo, Angelo M. & Araujo, Eurilton & Jorge, Marcos Valli & Kornelius, Alexandre & Marinho, Leonardo Sousa Gomes, 2024. "Brazilian macroeconomic dynamics redux: Shocks, frictions, and unemployment in SAMBA model," Latin American Journal of Central Banking (previously Monetaria), Elsevier, vol. 5(2).

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