Lower tax rates in the construction sector are often indicated as policies toward a better income distribution, because of the sector's intensity in unskilled labor. In this paper, I use a computable general equilibrium model to evaluate the impact of a reduction in the labor taxes of Brazil's construction sector. In the base simulation it is found that, although income concentration would tend to decrease, the low-income people would get worse off as a consequence of the policy. The reason of this apparent paradox relies on the fact that the price of the agricultural products would tend to increase, since agriculture is also intensive in unskilled labor. As a result, because the individuals with lowest income correspond precisely to those with the largest budget shares spent on agricultural products, they would be the most negatively affected by such a policy. These results hinge, however, on assumptions regarding the elasticity of substitution between labor and capital in the construction sector, a key parameter in the analysis.