Brazil's Tax Burden Gives Negative Effect

Product net tax (GDP ratio) The product net tax (net indirect tax) is the product tax minus the subsidy. Product tax is the tax that producers should pay in connection with the production, sale, purchase, or use of goods and services. Subsidies are ordinary grants from the general government to private enterprises and public corporations that are not incorporated. Brazil 's tax burden has increased from 29% in 1998 to 35% in 2004. From 1988 to 2004, public investment declined from 1% of GDP to 0.5%.

People are drawn as Brazilian circus clown and carry the burden of taxation. Brazil is one of the countries with the heaviest tax burden in the world, but there is nothing to prove - "taxation like Scandinavia, infrastructure like Africa" ​​is always suppressed. Brazilians see their money stolen or lost due to inefficiency and incompetence, since they are regarded as fools by paying so much money to the system. We will also address the consequences of such fraud and management errors, such as environmental damage caused by development and resource development. Immigrant refugees, immigrants from the northeastern part of Brazil migrate to the south and find "places of commitment" for larger cities in Brazil

The Brazilian tax system is one of the drivers that support its complexity. There are more than 90 taxes, duties and contributions in Brazil, all based on federal, state and local taxes. With the launch and launch of eSocial, a single system has been created that will replace the need for companies to separately report social security, domestic tax services, and Brazil's Ministry of Labor and Employment, but with the new system The complexity has increased slightly.

The progressive tax may have a negative influence. During inflation, the tax burden may be transferred to "weaker capability" and the government may actually hurt people trying to help by increasing the power to control the economy. There is no real solution to this. In addition, many people believe that such taxes punish rich jobs and money earnings. This may apply to some extent, but for anyone, fixed interest rates will be more harmful than profits. In addition, smaller taxpayers will pay implicit taxes in the US system. Therefore, the rich can pay more income tax, the poor compare it with the implicit tax. In this system, taxpayers will ultimately pay for what they use.