THE CONSTITUTIONAL HERMENEUTICS OF THE WEALTH TAX: A LEGAL AND ECONOMIC ANALYSIS OF THE IMPACT OF THE WEALTH TAX ON THE CAPITAL MARKET

Abstract

This paper aims to elucidate the complexities surrounding the enactment of the Wealth Tax in Brazil. As well as, clarify the possible economic impacts, focusing on the capital market, if there is the implementation of a wealth tax in the country. In addition, from the legal, economic and social point of view, clarify the reason why a device expressed in the Constitution has never advanced in the legislative houses, even though there are numerous bills in progress with this theme. It also analyzes the Brazilian Constitutional and Tax principles that guide the implementation of a tax, in order to understand how the positivization of a tax on wealth could happen in a country that already has one of the highest tax burdens in the world. Then, through a qualitative and quantitative research, we will be able to analyze, through Constitutional hermeneutics, the determining factors and the necessary procedures for the implementation or revocation of a device brought by the 1988 Federal Constitution that was never implemented. Furthermore, through quantitative data and comparative law, we can assimilate the lessons from countries that have already used taxation on wealth or countries that have decided to use this tax collection tool.  Likewise, to point out the benefits and harms of the implementation of the tax, focusing mainly on the economy and the capital market.