Taxation, democracy and inequality in Latin America: what can we learn from Brazil?

Brazil's high tax burden is one of the supports of its development model and its social contract, characterized by high redistribution/high tax equilibrium. In the light of the political theories of taxation and redistribution, the paper assesses the factors explaining the recent rise in tax revenues. It also discusses why pressures for redistribution have not generated strong political incentives for redistributive tax reform. Finally, the paper examines whether growing public debate on tax and popular mobilizations imply limits to further advances in taxation and the consequences on the sustainability of the social contract.