Tax Reform Could Boost Brazilian GDP by Up to 8%, Study Finds

A study conducted by a professor from the EPGE Brazilian School of Economics and Finance at Fundação Getulio Vargas and graduates of its Academic Master's and PhD programs shows that reforms aimed at simplifying Brazil's tax system — by reducing the heterogeneity of tax rates and cumulative taxation across sectors — could have significant impacts on economic activity and population welfare. The paper “Tax Reforms and Network Effects,” published in the Journal of Economic Dynamics and Control, estimates that eliminating these distortions could increase GDP by up to 7.9% and welfare by 1.8%.

The study is authored by Pedro Cavalcanti Ferreira (Professor at FGV EPGE), Diego B. P. Gomes and Bruno R. Delalibera (PhDs from FGV EPGE, currently at the International Monetary Fund and the University of Barcelona, respectively), and Johann Soares (Master’s graduate from FGV EPGE).
Read the full article in the Journal of Economic Dynamics and Control.

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Read the full article in the Journal of Economic Dynamics and Control.