Source: Diário Catarinense Online - SC - 30/09/2009

The Chamber of Young Entrepreneurs of the Commercial and Industrial Association of Florianópolis (Acif Jovem), in partnership with other entities linked to the Federation of Business Associations of Santa Catarina (Facisc) and the Confederation of Trade Associations of Brazil (CACB), will promote next Saturday another edition of the so-called Feirão do Imposto. The objective is to show society the weight of the tax burden that suffocates it, which today represents more than 37% of the Gross Domestic Product (GDP) by official figures, but much more than that (around 50%) in calculations and according to the methodology adopted by the country's corporate representation entities. Last year, Acif and Facisc sent suggestions to the National Congress for a new tax system. According to tax lawyer Klaus da Silva Raupp, who is on the board of the entities, these suggestions are focused on simplicity, efficiency and justice.

Among several other measures, we highlight the support for the creation of a tax (VAT) that would replace the current taxes on consumption, the most socially unfair, such as IPI, ICMS and others. It is about defending a tax reform based on the evidence that the larger the base and the more efficient the collection, the less tax evasion, the so-called “underground economy” shrinks, and, in return, more business and formal jobs are created.

In addition to a real tax reform like the one outlined in Acif's proposals, there is another problem that requires attention and measures, because in addition to the asphyxiating burden of taxes it imposes, the government spends badly on the large resources it collects. It has become commonplace to say that Brazil has a Swedish revenue, but gives its people an African counterpart in terms of infrastructure and public services. In fact, especially in these recent years, it is evident that public spending in the country lacks quality, when compared to the collection hypertrophy. As the Folha de S. Paulo newspaper recently recorded, despite all the official pride speech, the average worker income is still lower than in 1998, and the illiteracy rate remains stagnant at a high 9,8% of the adult population.

Meanwhile, the state pachydermic machine is inflated with more and more hires, and personnel expenses rise to the stratosphere, but there is a lack of resources for health - hence the maneuver to reissue the ill-fated CPMF -, basic sanitation is humiliating, roads and ports are on the verge of collapse. The Tax Fair promoted by Acif Jovem also underlines the urgency of the government to spend with more quality. To say the least.

Business entities in Santa Catarina, on the weekend, will return to the charge with the Feirão do Imposto, an event that shows society how the government collects too much, spends too much and spends badly.