Low-income families pay more taxes
Author: Marcone Gonçalves
Source: Correio Braziliense Online - Brasília / DF - 01/06/2010
As tax reform begins to appear in the speech of the three main pre-candidates for the Presidency of the Republic, a survey released by the Federation of Industries of the State of São Paulo (Fiesp) reveals that the issue is far from voters' daily lives. Although they paid R $ 1,09 trillion in taxes to maintain the public sector last year, the misinformation is general. Few taxpayers know, for example, that Brazil is one of the countries that most tax food (see table), with an average rate of 16,9%, far above Europeans (5,1%) and Americans (0,7 , XNUMX%).
Fiesp interviewed 70 people in 20 cities between March 30 and March 84, and found that 30% even know that part of the money from their purchases will end up in government coffers. However, few can guess how much of the final price of products and services comes from taxes. No more than XNUMX% of respondents said they knew the percentage in items such as sugar, electricity, telephone, long life milk, chicken, rice, washing machine, washing powder, beef and bread. The detail is that, in the case of these items, consumers indicated lower values than those actually paid.
The Brazilian tax burden is around 36% of the Gross Domestic Product (GDP), higher than that of nations with the same level of development. In national goods, the weight of taxes varies from zero to 80% of the price paid by the consumer. The rates applied to cigarettes (80%), beverages (44%), gasoline (35%) and household appliances (33%) follow the international standard. Fresh foods (fruits, vegetables and meats) have an average tax of 12%. The charge is 11% on food items that have undergone some industrial process. For eating out, the tax is even higher, at 16%.
Merchant Wendel de Souza Maciel, 28, who lives in Taguatinga, agrees that there is a lack of clear information on the payment of taxes at the time of shopping, especially on food, the main items of popular consumption. He spends nearly 40% of his monthly income to supply the pantry and, eventually, have lunch out with his wife and three young children. The tax burden was more visible to Maciel last week, after a gas station sold gasoline with a discount of more than 30%, corresponding to the value of the taxes. "If they do this with gasoline, imagine how much they shouldn't charge on top of fruits, meat, milk, which we buy every week," says Maciel.
Public services
Adriana Alves, 28, Maciel's wife, admits that the last thing she thinks about when shopping is taxes. She doesn't even know what taxes are levied on food. The greatest weight comes from the Tax on Circulation of Goods and Services (ICMS), responsible for 43,6% of the load, followed by the contribution to Social Security and the Guarantee Fund for Time of Service (FGTS), with 21,6% . "It is boring to remember that part of our income ends up with the government," he says. She regrets that the money left over goes to expenses that would be met if the government offered better services. "We have to hire a private health insurance because we don't have a hospital that provides proper care."
The director of the Department of Research and Economic Studies at Fiesp, Paulo Francini, explains that the objective of the research was to measure the degree of disinformation of Brazilians. According to him, the political class and government officials throw a smokescreen on the subject and withhold information from society. “They steal your wallet without you knowing it. In the end, it seems that everything is free, that the government receives resources from a divine order and then offers it to Brazilian society, ”he amended.
“Governments are ashamed to show the population how they collect taxes,” says the economist. For him, this explains the state's refusal to approve a measure requiring consumers to receive, on the purchase note, information on how much they paid in taxes on each product. For Francini, the data could help to awaken voters' awareness and critical spirit.
The regional manager of the Comper supermarket chain, Carlos Paes, regrets the fact that companies in the sector do not yet have a policy for disclosing taxes passed on to customers. According to him, a lower load would result in lower prices and higher sales. “The consumer does not understand taxes and always complains that it is the supermarket that is expensive. I never heard of anyone coming to ask about the part of their purchases that goes to the government, ”he complains.
Regressive effect
Taxes on consumption and public services, such as electricity and telephony, are included in prices. Therefore, they proportionally weigh more on those who earn less. This is called the regressive effect of taxation. Currently, a family with an income of up to R $ 500 usually spends more than 32% of the budget on food, while the percentage is around 10% for families earning over R $ 10.
According to the president of the Center for Advanced Studies in Tax Law and Public Finance (CEAT), Mary Elbe Queiroz, low-income people in Brazil are punished because the State prefers to tax products, then income and, finally, earnings from capital. "In other countries, the order is the reverse," he points out. The researcher considers the debate on tax reform innocuous, as it will not be possible to change the tax structure without the entire administrative management being reformulated. "It will not be a solution as long as we have a wasteful and inefficient state."
The Institute of Applied Economic Research (Ipea) estimates that, in 2008, those who earned up to two minimum wages paid about 54% of taxes in the year. Those who earned more than 30 minimums collected much less, 29%. In another perspective, while the poorest work 197 days to pay taxes, the richest “work” a lot less: 106 days, or three months less.
Professor Meire Pereira de Souza, 29, divorced, says she spends about half of her income on food for herself and her 7-year-old son. She considers it impossible to charge for consumption, but complains about public health, safety and education services. "The amount collected had to be fairer, with the return of this money for most people," he complains.
“They steal your wallet without you knowing it. In the end, it seems that everything is free, that the government receives funds from a divine order and then offers them to Brazilian society ”- Paulo Francini, director of Fiesp