Note from BW of Brazil: In Brazil, inequality continues to persist and can be measured according to gender and race. In 2013 for example, the monthly income of black (negros) Brazilians only came to about 57.4% that of whites (brancos), which is up from 48.4% in 2003. Although in a ten-year period was a decrease in inequality, according to a 2008 report in which black earned 53% of the salary of whites, at that rate in the reduction of inequality, the salaries of blacks would equal that of whites in 32 years in the year 2040.
In 2013, the average salary for white Brazilians was R$2,396.74 (US$976) while for blacks it was R$1,374.79 (USR$560). And, as usual, when we consider both race and gender, it is the black woman (preta/black + parda/brown) that continues to occupy the bottom rung on the scale. In 2012, white men earned R$2,035.70 (US$829) per month while white women earned R$1,393.57 (US$567), with black men (preto/black + pardo/brown) receiving R$1,144.33 (US$466) and black women coming in last at R$803.68 (US$327) per month. To add even more injury to the insult, although being the lowest on the pole in terms of salary, black women also pay proportionally the most taxes of the four groups. Clearly an injustice where the image matches the fact of white men being the dominant demographic in the country. But why is that? We can find a few of these answers in the recent report below.
In Brazil, the black woman earns the least money but pays the most taxes
A survey of the Institute for Socioeconomic Studies shows that the poorest 10% of the population commit 32% of their income on paying taxes. In this extract from the population, 68.06% and 31.94% are black, white. The most disadvantaged group is composed of 45.66% men and 54.34% women
A study of the Institute for Socioeconomic Studies (INESC) reveals that the Brazilian tax system, besides weighing on the poorest portion of the population punishes more blacks and women in comparison to whites and men. According to the survey, the poorest 10% commit 32% of their income to pay taxes. For the richest 10%, the weight of the taxes falls to 21%. The relationship with gender and race appears when comparing the participation of each segment of the population in these income categories. In the poorest 10% of the population, 68.06% is black and 31.94% is white. The most disadvantaged group is composed of 45.66% men and 54.34% women. In the richest 10%, who pay less tax in proportion to income, there are 83.72% brancos (white) and 16.28% negros (black). In this category, 62.05% is men and 31.05% women. “There is no doubt that the black woman is the most punished by the Brazilian tax system, while the white man is the most favored,” says the author of the study Evilásio Salvador, in the Agência Brasil article.
The survey crossed data from two surveys of the Brazilian Institute of Geography and Statistics (IBGE): the Pesquisa de Orçamento Familiar (POF or Household Budget Survey), which provides data on household income, and the Pesquisa Nacional por Amostra de Domicílios (Pnad or National Research by Household Sample), which captures demographic information such as race and gender. Historically, the Brazilian tax system punishes the poor because most of the tax is levied on consumption and wages, instead of being charged with more intensity on equity and capital income. According to the study, in Brazil, 55.74% of tax revenues came from consumption 15.64% from labor income in 2011, totaling 71.38%. In countries of the Organization for Economic Cooperation and Development (OECD), the average is 33%.
By Maximum Wellton, for Agência Brasil
Brazilian tax system burdens more blacks and women, study shows
Characterized by burdening proportionally the poorest relative to the wealthier, the Brazilian tax system causes a deeper kind of injustice. A study by the Institute for Socioeconomic Studies (INESC) reveals that taxes punish more blacks and women compared to whites and men.
The survey crossed data from two surveys of the Instituto Brasileiro de Geografia e Estatística (Brazilian Institute of Geography and Statistics or IBGE). The study was based on the POF, which provides data on household income, and the PNAD, which captures demographic information such as race and gender.
According to the survey, the poorest 10% of the population commit 32% of their income on paying taxes. For the richest 10%, the weight of the taxes falls to 21%. The relationship with gender and race appears when comparing the participation of each segment of the population in these income categories.
In the poorest 10% of the population, 68.06% is black and 31.94% is white. The most disadvantaged group is composed of 45.66% men and 54.34% women. In the richest 10% who pay less tax in proportion to income, there are 83.72% white and 16.28% black. In this category, 62.05% is men and 31.05% women.
“There is no doubt that the black woman is the most punished by the Brazilian tax system, while the white man is the most favored,” says author of the study Evilásio Salvador. For him, it is a false idea that the Brazilian tax is neutral with respect to race and gender…“As the base of the social pyramid is composed of blacks and women, the high tax burden considerably increases in this segment of the population,” he contests.
Historically, the Brazilian tax system punishes the poorest because a large part of the tax is levied on consumption and wages, instead of charging with more intensity on equity and capital income. According to the study, in Brazil, 55.74% of revenues came from taxes on consumption and 15.64% from labor income in 2011, totaling 71.38%. In the countries of the Organization for Economic Cooperation and Development (OECD), the average is 33%.
Taxes on consumption are regressive from the social point of view because they are embedded in the prices of goods and services. Thus, a commodity with R$1 of tax embedded in the price weighs on those in the lower income bracket.
To reverse the situation, Oliveira points out the need for a tax reform that broadens the tax on assets and capital income and removes the burden from consumption and labor income. “The rich need to be taxed proportionately more through progressive rates that increase with the level of income,” he explains.
Among suggested measures, he advocates the regulation of Imposto sobre Grandes Fortunas (Tax on Great Fortunes) – determined by the Constitution, but to date not fulfilled – and the extension of recovery of Property Tax on Motor Vehicle (property taxes) on to luxury vessels such as speedboat, private jets, helicopters and jet skis.
Source: Brasil 247, Agência Brasil, Movimientos, Senado
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