Banca de QUALIFICAÇÃO: WILLIAN DE QUEIROZ VIANA

AN ANALYSIS OF THE BRAZILIAN TAX SYSTEM AND THE NEED FOR REFORM.

tax system; social inequality; tax reform; progressive taxation.

This dissertation presents a critical analysis of the current Brazilian tax system, highlighting its shortcomings and impact on social inequality. The main objective is to discuss the need for tax reforms to promote greater social justice and present the proposals being debated in Congress and society at large. The study concludes that income taxation should be more progressive, with higher taxes levied on the wealthy and lower taxes on the poor. Additionally, it is necessary to eliminate the distortions of the presumed profit and real profit regimes and align effective tax rates with statutory rates prescribed by law. Taxation on goods and services has some flaws, such as the imposition of taxes on the same base, which generates inefficiency in the productive sector and impacts the productivity of companies in the country. Payroll taxation can also have negative impacts on the economy, such as reducing the supply of formal employment and incentivizing informality. The study also highlights the importance of fiscal education to disseminate information and concepts about fiscal management and to encourage social participation in the processes of application and oversight of public resources. The proposals currently being debated in the Federal Congress, together with the ANFIP (Association of Fiscal Auditors of the Brazilian Federal Revenue Service) Solidarity Reform, aim to address the problems by providing alternatives to reduce income inequality through changes in tax rates or to streamline the tax system. Finally, the study emphasizes that tax reform must be carefully planned and executed to minimize possible negative impacts, involving relevant stakeholders in the process of drafting, and implementing tax reform. A successful tax reform must be grounded in evidence and careful analysis of the potential impact on different sectors of the economy and social groups.