Yep, this is absolutely correct. I don't see how people don't realize this, the simplest way to make brazil less unequal is to REDUCE tax!
From wiki: > The collection of federal taxes on the reserve base, shows that of the amount collected by the IRS of Brazil, the majority of the taxes are based on consumption, with approximately 53% on average of the funds raised by Revenue Federal Brazil and continue accounting for more than half of tax (52%) charged by the agency. This tax structure is even more perverse when we add the taxes collected at the state and municipal levels, which bring in the largest source of revenue. The tax burden on consumption is regressive. In Brazil those who earn up to twice the minimum wage spend 26% of their income to pay indirect taxes, while the tax burden for families with income higher than 30 times the minimum wage amounts to only 7%. Excessive taxation on consumption depresses demand directly affecting the economy, reducing the consumption of the middle and lower income families.
Taxing the rich will solve nothing (and let's be honest, this government is not aiming nor has the capacity to enforce it). Something much simpler is just let people be able to consume things, by removing taxes and cutting spending (probably not even necessary given how much the state already takes from its people).
Super simple, but, as usual, we love to overcomplicate it and play the popularity game.