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The outbreak of the Covid-19 pandemic has led to an increasing interest inUniversal Basic Income (UBI) proposals as it exposed the inadequacy oftraditional welfare systems to provide basic financial security to a largeshare of the population. In this paper, we use a static tax-benefitmicrosimulation model to analyse the fiscal and distributional effects of thehypothetical implementation in Brazil of alternative UBI schemes whichpartially replace the existing tax-transfer system. The results indicate thatthe introduction of a UBI/Flat Tax system in the country could be bothextremely effective in reducing poverty and inequality and economically viable.

A Universal Basic Income For Brazil: Fiscal and Distributional Effects of Alternative Schemes