{"id":3346,"date":"2026-05-08T16:46:21","date_gmt":"2026-05-08T19:46:21","guid":{"rendered":"https:\/\/madeusp.com.br\/?post_type=made_publication&p=3346"},"modified":"2026-08-13T18:01:50","modified_gmt":"2026-08-13T21:01:50","slug":"tax-reforms-for-the-provision-of-care-in-brazil-public-investment-or-tax-incentives","status":"publish","type":"made_publication","link":"https:\/\/madeusp.com.br\/en\/publicacoes\/artigos\/tax-reforms-for-the-provision-of-care-in-brazil-public-investment-or-tax-incentives\/","title":{"rendered":"Tax reforms for the provision of care in Brazil: public investment or tax incentives?"},"content":{"rendered":"

Public finan\u00adcing of care-rela\u00adted poli\u00adci\u00ades, infras\u00adtruc\u00adtu\u00adre, and public pro\u00adcu\u00adre\u00adment, the pro\u00admo\u00adti\u00adon of public care networks, through invest\u00adments in day\u00adca\u00adre cen\u00adters and scho\u00adols, inclu\u00adding full-time ones, hos\u00adpi\u00adtals, elderly care ins\u00adti\u00adtu\u00adti\u00adons, and cafe\u00adte\u00adri\u00adas, among other care ser\u00advi\u00adces, is not only capa\u00adble of reli\u00ade\u00adving the high wor\u00adklo\u00adad that falls on the shoul\u00adders of women, espe\u00adci\u00adally tho\u00adse from the wor\u00adking class, but it can also cre\u00ada\u00adte jobs for many of them.<\/span><\/p>\n

The cur\u00adrent Bra\u00adzi\u00adli\u00adan con\u00adtext pro\u00advi\u00addes an oppor\u00adtu\u00adne moment to dis\u00adcuss the role of the govern\u00adment in gua\u00adran\u00adte\u00adeing access to care ser\u00advi\u00adces but not without subs\u00adtan\u00adti\u00adal obs\u00adta\u00adcles. The very nar\u00adrow fis\u00adcal spa\u00adce enfor\u00adced by the appro\u00adval of a new fis\u00adcal rule limits the uni\u00adver\u00adse of poli\u00adci\u00ades that are fea\u00adsi\u00adble, making it much easi\u00ader for a tax expen\u00addi\u00adtu\u00adre to be imple\u00admen\u00adted ins\u00adte\u00adad of an incre\u00ada\u00adse in public spen\u00adding. Further\u00admo\u00adre, pre\u00advi\u00adous work has shown that most tax reforms pre\u00adsen\u00adted in Con\u00adgress have a nega\u00adti\u00adve impact on the tax bur\u00adden and con\u00adse\u00adquen\u00adtly on the govern\u00adment bud\u00adget. This paper pro\u00advi\u00addes evi\u00adden\u00adce of the dis\u00adtri\u00adbu\u00adti\u00ado\u00adnal cost of this obser\u00adved con\u00adgres\u00adsi\u00ado\u00adnal pre\u00adfe\u00adren\u00adce by analy\u00adzing two types of care-rela\u00adted poli\u00adci\u00ades. First, we inves\u00adti\u00adga\u00adte reforms encom\u00adpas\u00adsing tax incen\u00adti\u00adves rela\u00adted to the care sec\u00adtor. Second, we con\u00adsi\u00adder tax reforms that allow for an incre\u00ada\u00adse in govern\u00adment expen\u00addi\u00adtu\u00adres in care infrastructures. <\/span><\/p>\n

We use data from Brazil\u2019s expen\u00addi\u00adtu\u00adre sur\u00advey (POF) to esti\u00adma\u00adte the tax expen\u00addi\u00adtu\u00adre of allowing for a per\u00adso\u00adnal inco\u00adme tax deduc\u00adti\u00adon for care-rela\u00adted ser\u00advi\u00adces such as spen\u00adding with pri\u00adva\u00adte nur\u00adse\u00adri\u00ades, hiring baby\u00adsit\u00adters, and pri\u00adva\u00adte edu\u00adca\u00adti\u00adon for chil\u00addren up to 15 years old. We com\u00adpa\u00adre the impact of such a policy on ine\u00adqua\u00adlity to a govern\u00adment expen\u00addi\u00adtu\u00adre towards public ser\u00advi\u00adces of the same size. We find that whi\u00adle tax deduc\u00adti\u00adons for care-rela\u00adted ser\u00advi\u00adces would bene\u00adfit peo\u00adple at the top two deci\u00adles of the inco\u00adme dis\u00adtri\u00adbu\u00adti\u00adon, inves\u00adting in public care ser\u00advi\u00adces would have a higher impact on peo\u00adple at the first three deciles.<\/span><\/p>\n

We use the same expen\u00addi\u00adtu\u00adre amount to esti\u00adma\u00adte the impact on jobs of the two pos\u00adsi\u00adble poli\u00adci\u00ades using an input-out\u00adput model. We com\u00adpa\u00adre the num\u00adber and dis\u00adtri\u00adbu\u00adti\u00adon of the jobs cre\u00ada\u00adted with res\u00adpect to gen\u00adder and race and find that public expen\u00addi\u00adtu\u00adre in care infras\u00adtruc\u00adtu\u00adre cre\u00ada\u00adtes more jobs for women and has an ove\u00adrall employ\u00adment cre\u00ada\u00adti\u00adon impact that is around 55% higher than the impact of a tax deduc\u00adti\u00adon of the same size. <\/span><\/p>\n

Our results point to the fact that although tax deduc\u00adti\u00adon poli\u00adci\u00ades are poli\u00adti\u00adcally easi\u00ader to imple\u00adment, they are not jus\u00adti\u00adfi\u00ada\u00adble in terms of their impact on inco\u00adme, gen\u00adder, and raci\u00adal ine\u00adqua\u00adlity when com\u00adpa\u00adred to the alter\u00adna\u00adti\u00adve of using the same value of tax expen\u00addi\u00adtu\u00adres toward the pro\u00advi\u00adsi\u00adon of public services.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Public finan\u00adcing of care-rela\u00ad\u00adted poli\u00adci\u00ades, infras\u00adtruc\u00adtu\u00adre, and public pro\u00adcu\u00adre\u00adment, the pro\u00admo\u00adti\u00adon of public care networks, through invest\u00adments in day\u00adca\u00adre cen\u00adters and scho\u00adols, inclu\u00adding full-time ones, hos\u00adpi\u00adtals, elderly care ins\u00adti\u00adtu\u00adti\u00adons, and cafe\u00adte\u00adri\u00adas, among other care ser\u00advi\u00adces, is not only capa\u00adble of reli\u00ade\u00adving the high wor\u00adklo\u00adad that falls on the shoul\u00adders of women, espe\u00adci\u00adally tho\u00adse from the [\u2026]<\/p>\n","protected":false},"template":"","tags":[],"made_publication_type":[78],"class_list":["post-3346","made_publication","type-made_publication","status-publish","hentry","made_publication_type-working-papers"],"acf":[],"yoast_head":"\nTax reforms for the provision of care in Brazil: public investment or tax incentives? — Made<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/madeusp.com.br\/en\/publicacoes\/artigos\/tax-reforms-for-the-provision-of-care-in-brazil-public-investment-or-tax-incentives\/\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/madeusp.com.br\\\/en\\\/publicacoes\\\/artigos\\\/tax-reforms-for-the-provision-of-care-in-brazil-public-investment-or-tax-incentives\\\/\",\"url\":\"https:\\\/\\\/madeusp.com.br\\\/en\\\/publicacoes\\\/artigos\\\/tax-reforms-for-the-provision-of-care-in-brazil-public-investment-or-tax-incentives\\\/\",\"name\":\"Tax reforms for the provision of care in Brazil: public investment or tax incentives? 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