PROPOSAL FOR REFORM IN THE BRAZILIAN TAX SYSTEM: INSS AND INCOME TAX

Abstract

This article proposes a critical and proactive analysis of the reform of the Brazilian tax system, focusing on two key taxes: the Personal Income Tax (IRPF) and social security contributions to the National Institute of Social Security (INSS). This qualitative, exploratory, and bibliographical research is based on the observation that the current system presents structural distortions that compromise fiscal justice, progressivity, and the sustainability of social security. Among the main problems identified are the regressiveness of consumption taxation, the outdated IRPF tax schedule, the lack of taxation on profits and dividends, and the concentration of the social security burden on the payroll. Based on authors such as Carrazza (2020), Gobetti (2022), Rezende (2020), Giambiagi (2017), Schiozer et al. (2022) and Guerra (2024), the study proposes measures aimed at increasing the progressivity of the Personal Income Tax (IRPF), correcting distortions in social security revenues, and promoting greater transparency and simplicity in the tax structure. The documentary analysis includes proposed constitutional amendments, technical reports, and institutional opinions, while the systematic review maps academic production between 2018 and 2025, a period marked by intense legislative debates on tax reform. The proposed proposal seeks to reconcile the constitutional principles of the state's ability to pay and its redistributive function with contemporary fiscal policy challenges, such as an aging population, informal labor market, and the need to balance public finances. Ultimately, the article contributes to the academic and institutional debate on building a fairer, more efficient, and socially committed tax system capable of reducing inequalities and strengthening the Brazilian federative pact.