Income Taxes Exposes Inequality and The Advantage of Federal Employees

Federal District leads income in the country and has the third largest declared equity

São Paulo

Data from the Individual Income Tax (IRPF) in Brazil explain the huge income disparity and the high salary concentration in federal civil servants in relation to the rest of the population.

The figures also reveal how only a small portion of the population pays Brazil taxes, via Income Tax: 14.4%. This is less than the Latin American average and that of many countries in southern Europe.

Even so, Brazil has one of the highest tax burdens among the emerging countries - and very much on consumption, burdening the poor proportionately more.

BRASILIA, DF, BRASIL: Palácio do Planalto. (Foto: Pedro Ladeira/Folhapress, PODER) - Folhapress

Because of the federal employees in Brasília, the Federal District (DF) has the highest average income among the 27 units of the Federation (considering who declares the IRPF and who does not) and among the taxpayers only.

In the total population, income in the Federal District is R $ 2,981 per month, compared to R $ 1,228 in the country's general average. Among taxpayers, it's R $ 11,994, compared to R $ 8,528 on average for those who declare IRPF.

The federal capital is also the unit of the Federation where there are more deponents: 24.8%, precisely because of public and formal jobs.

The data, organized by FGV Social as from the 2018 IRPF, include all declared income, including financial investments and so-called PJ (legal entities), often individuals who collect lower taxes through Simples.

In comparisons between the average income of the population and the civil service, it is common for unions of civil servants to complain that PJs are not included. Here, this happens - and even so, the income of the class is higher.

Translated by Kiratiana Freelon

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