This paper assesses causes and consequences of fiscal redistribution in Brazil. The framework proposed allows evaluating in an integrated manner the impacts of government-sponsored actions in inequality and mean income changes on social welfare, addressing both static and dynamic implications....

The Brazilian government raises taxes amounting to 35% of GDP and spends more than two thirds of this on social programmes. These shares are in pair with the OECD averages and well in excess of Latin America averages. However, while tax-benefit systems in most OECD countries reduce income...