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CEQ Working Paper No 16: Comparing The Incidence Of Taxes And Social Spending In Brazil And The United States


Comparing The Incidence Of Taxes And Social Spending In Brazil And The United States
Working Paper No. 16

A working document by:
Nora Lustig
Tulane University
Sean Higgins
Tulane University
Whitney Ruble
Tulane University
Timothy Smeeding
University of Wisconsin at Madison

Abstract
We perform the first comprehensive fiscal incidence analyses in Brazil and the US, including direct cash and food transfers, targeted housing and heating subsidies, public spending on education and health, and personal income, payroll, corporate income, property, and expenditure taxes. In both countries, primary spending is close to 40 percent of GDP. The US achieves higher redistribution through direct taxes and transfers, primarily due to underutilization of the personal income tax in Brazil and the fact that Brazil‘€™s highly progressive cash and food transfer programs are small while larger transfer programs are less progressive. However, when health and non-tertiary education spending are added to income using the government cost approach, the two countries achieve similar levels of redistribution. This result may be a reflection of better-off households in Brazil opting out of public services due to quality concerns rather than a result of government effort to make spending more equitable.

Access the working document here:
Updated November 2013
CEQ Working Paper No 16: Comparing The Incidence Of Taxes And Social Spending In Brazil And The United States

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Please join us Mondays at noon for our Fall speaker Series
Markets, the State, and Democracy in Latin America
October 14, October 21, November 11, and November 18.

In the 2019 fall series, Markets, the State, and Democracy in Latin America, speakers will discuss emerging issues that have surfaced as the result of the opportunities and challenges to democratic governance that markets have brought to the region. Latin America experienced a major influx of investment, particularly in the resource sector, over the past several decades. While this foreign investment helped hasten economic development, it also brought a backlash of resource nationalism and increased calls for redistribution. Moreover, Latin America is now a model in its own right, with other countries in the Global South adopting its state-sponsored development strategies in the resource sector. These presentations will also explore how Latin America is navigating a sea change in geopolitics, with China emerging as a challenger to the United States as the region’s main trade partner and ally.

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Latin American Writers Series: Alberto Barrera Tyszka

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Ecuadorian writer and Tulane Visiting Scholar Gabriela Alemán interviews Venezuelan writer Alberto Barrera Tyszka about his life, interests, and influences. Their discussion will be followed by an open Q&A and an informal reception. This event will be held in Spanish.

About the Latin American Writers Series

This series brings together Latin America’s most representative creative voices and the editorial entrepreneurs that publish them. By way of interviews conducted by renowned Ecuadorian writer Gabriela Alemán and presentations of various editorial missions, the guests will shed light on a literary world shaped by the contemporary issues of the continent. Moving forward, their conversations will comprise the centerpiece of a digital archive that introduces their ideas to a global audience.

Este serie reúne a los autores más representativos de la escritura continental y los editores que los publican. A través de entrevistas con la reconocida escritora ecuatoriana Gabriela Alemán y presentaciones de proyectos editoriales, los invitados explorarán los vínculos entre el mundo literario y la realidad continental. Sus conversaciones se convertirán después en el eje de un archivo digital que busca llevar estas ideas a un público global.

About the Author

Born in Caracas, Alberto Barrera Tyszka has published over a dozen works of poetry, short story, chronicle, novel, and biography. His most recent publications include the novels Patria o Muerte (2015) and Rating (2011), the poetic anthology La inquietud (2013), the collection of chronicles Un país a la semana (2013), and the short story collection Crímenes (2009). In 2005, he collaborated with Cristina Marcano to write the definitive biography of Hugo Chávez, Hugo Chávez sin uniforme: una historia personal (2005). Patria o muerte won the 2015 Premio Tusquets de Novela, and his novel La enfermedad, translated into English as The Sickness (2010), received the 2006 Herralde Award. Barrera also writes for television and has scripted soap operas for Venezuelan, Mexican, Colombian, and Argentinian networks.