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Contribuição Ao Inss: Equilíbrio Financeiro E Imposto Sobre O Trabalho

Author

Listed:
  • Reynaldo Fernandes
  • Renata Del Tedesco Narita

Abstract

In this paper, we calculate the necessary payroll tax to reach the financial equilibrium of the retirement system for formal workers in the private sector in Brazil (INSS). Such an exercise allows us to identify the formal employees who contribute to the increase of the INSS deficit. Although we do not know the subjective value of the benefits provided by INSS for each worker, our intention is to have an idea of the tax (or subsidy) for each contributor, given by the simple difference between the actual and the necessary payroll tax. Using the Brazilian Household Survey (PNAD) for the year 2001, the conclusion is that the necessary payroll tax to balance the system varies within 0.19 and 0.33 percent, depending on the hypotheses about the duration of the contribution; and those related to disability benefits. Finally, we show a great dispersion when we compare taxes among different groups of workers. This result indicates that INSS is a powerful instrument to reduce wage inequality, when transferring resources from groups of a large wage category to those of a lower.

Suggested Citation

  • Reynaldo Fernandes & Renata Del Tedesco Narita, 2005. "Contribuição Ao Inss: Equilíbrio Financeiro E Imposto Sobre O Trabalho," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33rd Brazilian Economics Meeting] 055, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    • Handle: RePEc:anp:en2005:055
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    File URL: http://www.anpec.org.br/encontro2005/artigos/A05A055.pdf
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    Cited by:

    1. Giambiagi, Fabio & Afonso, Luís Eduardo, 2009. "Cálculo da Alíquota de Contribuição Previdenciária Atuarialmente Equilibrada: uma Aplicação ao Caso Brasileiro," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 63(2), June.

    More about this item

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence

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