In the video below, Milton Friedman argues that "government failures" are major sources of poverty.
I am not sure his claims are backed up by hard evidence but they surely beg the question: Will raising taxes on the rich for redistributive purposes really improve economy's distributive outcomes? Or will "government failures" kick in and make income distribution even more unequal?
If you entertain this possibility, you may naturally ask: Would income distribution in Brazil be less skewed (to the right) had the government been kept smaller over the last, say, 50 years? Just some food for thought. ...Those reading, or just interested on, Thomas Piketty's "Capital" will probably feel compelled to share their opinions on these issues.
Tax Burden versus Income Inequality (Gini Index)
Below some figures that will give you an idea of how these things seem to correlate over time. A worthy reminder: Do not take the relationship between these trends as necessarily implying causation.