According to Oxfam Brasil, this scenario also concentrates more and more political and economic power.
The report A Portrait of Brazilian Inequalities: Power, Privilege and the Capture of Democracy, released last month, shows that the richest 1% accounted for 24.3% of all the country's income in 2023 and held 37.3% of the declared wealth.
For the organization, this scenario increases the ability of richer groups to influence elections, public policies and State decisions, while women, black people and other historically excluded groups continue to be underrepresented in spaces of power.
To reach these conclusions, the research brought together data from the Brazilian Institute of Geography and Statistics (IBGE), the Federal Revenue Service, the Ministry of Finance and the Superior Electoral Court (TSE), in addition to national and international studies on income, assets, taxation and political representation.
Below, see the main results of the study in six graphs.
Income inequality decreases, but concentration remains high
The gap between rich and poor has narrowed in recent years, but remains high, according to the report.
Data from the Continuous National Household Sample Survey (PNAD), by IBGE, show that the richest 1% of the population currently receives the equivalent of 36.2 times the income of the poorest 40%.
Despite remaining significant, this is the smallest difference recorded since the beginning of the historical series, in 2012.
For the executive director of Oxfam Brasil, Viviana Santiago, advances in combating poverty are important, but insufficient to reduce inequality.
"Poverty is half the conversation. Inequality is about the relationship between those who have a lot and those who have little. Brazil has made progress in reducing poverty, but it still does not face the main problem, which is the intense concentration of wealth at the top", he states.
The study highlights, however, that household surveys tend to underestimate the income of the richest, as gains from profits, dividends and financial investments are not always captured in interviews.
Therefore, the report also uses data from the Federal Revenue Service, which points to an even higher level of income concentration. According to Income Tax data, the richest 10% account for 52% of all declared income in the country.
Between 2017 and 2023, the share of national income concentrated by the richest 1% increased from 20.4% to 24.3%.
During the period, the income of this group grew, on average, 4.4% per year, while the average income of Brazilian families increased by 1.4% per year. The report points out that most of this growth was concentrated at the top of the pyramid.
Around 85% of the increase in income went to the richest 0.1%, while half of this increase was appropriated by the 0.01% of the population with the highest income.
According to the study, around 90% of this group's income comes from profits, dividends and financial investments, and not from salaries.
Heritage is also concentrated at the top
In addition to income, wealth remains highly concentrated. Data from the Federal Revenue show that the richest 1% owns 37.3% of all declared assets in the country.
Among the richest 0.1%, around 80% of wealth is made up of financial assets, such as shares, funds and investments, while only 15% corresponds to real estate.
According to the report, the predominance of financial assets favors the increase in wealth over time, as these investments generate income continuously.
Women earn less and accumulate less wealth
The report also highlights gender inequalities. Although they represent 44.1% of income tax filers, women account for only 38% of declared income in the country.
On average, they receive R$120,600 per year, compared to R$155,300 among men.
The difference increases when considering accumulated assets. Women hold 29.5% of declared assets in the country.
The average wealth of women is R$246 thousand, just over half of the R$463.6 thousand registered among men.
According to the study, this difference is also reflected in taxation, since more than half of women's income, 56.5%, comes from salaries, subject to full taxation. Among men, 53.5% of income comes from profits and dividends, which are exempt from Income Tax.
In the group that receives more than 320 minimum wages per month, women account for just 11.6% of total income.
Black women face the greatest pay inequality
Inequalities also appear in the job market when gender and race are considered. Data from the Ministry of Labor indicate that non-black men receive, on average, R$6,560 per month.
Among non-black women, the average salary is R$5,039. Black men receive R$3,875, while black women have an average income of R$3,026.
When informal work is included in the analysis, the difference increases. The average income of black women drops to R$2,079, around 54% lower than that of non-black men.
According to the report, lower income reduces the ability to save and invest, making it difficult to accumulate wealth over time.
Tax system favors income concentration
The study concludes that the Brazilian tax system helps maintain income inequality.
According to the study, most of the revenue comes from taxes on consumption and wages, which weigh proportionally more on low-income families, while assets, inheritances and capital income receive relatively less taxation.
"The measures adopted so far seek to address the situation of those who have very little, but do not address the concentration of income at the top. Today, the tax system favors the concentration of wealth and makes it difficult for the poorest people to accumulate wealth", says Viviana Santiago.
Although the Income Tax table is progressive for those who live on salaries, the report highlights that this mechanism does not apply in the same way to those who receive income from profits and financial investments.
In practice, the effective rate paid by the richest 0.01% is just 4.6%, a percentage lower than that paid by many salaried workers.
According to Viviana, this occurs because the Brazilian tax model focuses mainly on consumption.
"A black solo mother can pay more taxes than a billionaire, because practically all of her income is destined for consumption, which is highly taxed. A billionaire, on the other hand, does not consume the majority of his income and receives a significant portion through profits and dividends", he states.
The study points out that the main distortion is the exemption from Income Tax on profits and dividends, in force since the 1990s.
In 2023, almost 35% of all exempt income declared in the country came from this type of income.
According to the authors, this model reinforces the cycle of income and wealth concentration by favoring the increase in wealth of higher-income groups and expanding their economic and political influence.
