Author: Eleno Mendonça

Source: Brasil Econômico - São Paulo / SP - 24/08/2010

The elections brought back the recurring theme of the need for reform
tax. The problem is that no candidate has effectively shown what
intends to do to reduce the burden of taxes.

“This issue concerns everyone and we should be talking more about reform
of the tax system, as this is the time to enter into this type of commitment
with the population ”, evaluates tax lawyer Letícia Amaral, from the Brazilian Institute
Tax Planning (IBPT).

The Federation of Industries of Rio de Janeiro (Firjan) did a survey and
detected that 85,1% of people would like the subject to be more present
in the debate between candidates.

“The worst of all is that even this year the load tends to increase, taking into account
having regard to the statement by the Ministry of Finance to impose a goal of raising the
collection compared to last year ”, says Letícia.

Firjan's survey of 2.482 people showed that the tax burden
in Brazil is perceived as high or very high by over 95% of the population and that
the reduction of taxes is seen as a great benefit for the population because
89,2% of people.

Last week, President Lula said that a high tax burden is
necessary for social development: “In all countries that have a strong
social policy, in which workers have all their teeth in their mouths, the burden
tax is high ”.

Letícia thinks that the president did not realize that Brazil has a burden
tax burden of 36% of GDP, and remains toothless and hungry. "O
Brazil returns very little to the population in public services and better conditions
of life. So the Brazilian who can hire security and medical services
private individuals. ”

For the tax consultant Sueli Angarita, from the Fiscal Solution, the great
problem is the ICMS, tax on the circulation of goods and services.

“As it is state and incident at the origin, instead of at the destination, it ends
producing huge distortions and the reform is not going because nobody wants
lose".

She recalls that the Southeast Region, having the majority of large companies,
ends up accounting for 56% of all ICMS collection in Brazil and for that reason
concentrates 52% of employment opportunities.

For her, this causes a huge income imbalance and promotes misery in
other regions. “We must remember that tax is money. So the States
more influential people scream so much when it comes to reform, ”adds Sueli.

Firjan's research created a scenario for respondents in which in
as a result of the tax reduction, there would be a 5% increase in people's income.
Forty-four percent said they would use the surplus money to
save; 37% said they would go for consumption; and 18,7% chose to pay
debts.

The survey also showed that 72,7% of workers simply did not
they know the total taxes levied on their wages.

The majority, 55,7%, believe that in the event of a reduction in the tax burden,
money would be transferred to the population. For a third of the interviewees
there would be a drop in the price of products.

The most significant, in the assessment of Firjan technicians, was the number of
95.6% who think the load is high. Another worrying fact is the fate that people
imagine that the government gives to public money.

Almost 65% speak of maintenance and improvement of services, but 21,8% say that the
money supplies the pockets of the government.

Tax attorney Letícia Amaral shows some dismay about a solution in the
short or medium term. “Without changing the management of public spending, we will never have another
scenario".

For her, the government needs to remember that without the burden of taxes the population
consume more and with that the economy would grow at a higher rate and there would be
increase in revenue compared to current levels.

“Not to mention that with less taxes, much of the evasion and informality
would disappear. ” It is the old maxim that when everyone pays everyone pays
any less.

Last year, the IBPT surveyed small, medium and large companies
companies to assess the degree of tax evasion. The indexes were 65%, 49% and 27%,
respectively.

Even with this reality, the collection continues to break records. Yesterday,
those who passed through Rua Boa Vista, in downtown São Paulo, could see that the
Impostometer, created by the Commercial Association to measure the collection of
taxes in Brazil and as a way to protest the high tax burden,
reached R $ 789,5 billion.