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hmn, do you mean corruption is not as bad as income inequality? Because one can argue that corruption foster inequality, where government workers steal money f

hmn, do you mean corruption is not as bad as income inequality? Because one can argue that corruption foster inequality, where government workers steal money from the people, they give favor to rich "friends" making them richer. I can guess your solution is to give more power to the state to solve the inequality issue, which actually worsens the corruption caused inequality.

forinti 9y ago
I don't think cutting corruption to zero would impact people's lives as much as having a progressive tax system. If you look at overall tax burden, the lowest tier pays close to 50%. The highest tier, a bit over 25%. Trump tried to lower corporate tax to 15% and not even his party thought it was reasonable. In Brazil, corporate tax is zero. One of the richest people in Brazil, Steinbruch, was caught trying to evade an estate tax of only 4%, when food is taxed at near 20%.
- cjalmeida 9y ago
  You're wrong. In Brazil corporate income is taxed at 34,5% (base 15%, plus additional 10% for medium to big sized companies, plus 9,5% for social security) That amount is on par or above OCDE counties, and much higher than most developing nations. What we don't have is dividend tax. Unlike corporate tax that one must pay every quarter, you only pay dividend tax if you give money back to shareholders, so reinvestments are not taxed. Usually countries balance income and dividend taxes so the government has a stable income but doesn't penalize investments as much. In Brazil, we opted for screwing investors. Not to mention that companies pay an enormous amount of money in combined sales taxes. A manufacturing company usually pays 17% for state sales tax, another 9,35% federal social security, and sometimes an extra 5% to 15% for "luxury good" (like shampoo). So, again, you're completely wrong and companies (read YOU) pay a hell lot of taxes in Brazil. Source: I worked in investment analysis in another life.
  - pedro_hab 9y ago
    Idk much about corporate taxes in Brazil, but I do know that the poor pay way too much, a minimum wage employee pays taxes and "contributions" and other forms of taxations, such as FGTS and inflation. And they pay again when buying goods, I was shocked when I read about the welfare state and the welfare cliff in the US, for the propaganda I was subjected in Brazil it was hard to believe. So Brazil is way worse for the poor than the US, and getting paid in Brazil as remote for me (as a dev) is cheaper, since I work as a contractor and would pay between 4-6% taxes against ~25% in the US.

forinti 9y ago

I don't think cutting corruption to zero would impact people's lives as much as having a progressive tax system. If you look at overall tax burden, the lowest tier pays close to 50%. The highest tier, a bit over 25%. Trump tried to lower corporate tax to 15% and not even his party thought it was reasonable. In Brazil, corporate tax is zero. One of the richest people in Brazil, Steinbruch, was caught trying to evade an estate tax of only 4%, when food is taxed at near 20%.

cjalmeida 9y ago
You're wrong. In Brazil corporate income is taxed at 34,5% (base 15%, plus additional 10% for medium to big sized companies, plus 9,5% for social security) That amount is on par or above OCDE counties, and much higher than most developing nations. What we don't have is dividend tax. Unlike corporate tax that one must pay every quarter, you only pay dividend tax if you give money back to shareholders, so reinvestments are not taxed. Usually countries balance income and dividend taxes so the government has a stable income but doesn't penalize investments as much. In Brazil, we opted for screwing investors. Not to mention that companies pay an enormous amount of money in combined sales taxes. A manufacturing company usually pays 17% for state sales tax, another 9,35% federal social security, and sometimes an extra 5% to 15% for "luxury good" (like shampoo). So, again, you're completely wrong and companies (read YOU) pay a hell lot of taxes in Brazil. Source: I worked in investment analysis in another life.
- pedro_hab 9y ago
  Idk much about corporate taxes in Brazil, but I do know that the poor pay way too much, a minimum wage employee pays taxes and "contributions" and other forms of taxations, such as FGTS and inflation. And they pay again when buying goods, I was shocked when I read about the welfare state and the welfare cliff in the US, for the propaganda I was subjected in Brazil it was hard to believe. So Brazil is way worse for the poor than the US, and getting paid in Brazil as remote for me (as a dev) is cheaper, since I work as a contractor and would pay between 4-6% taxes against ~25% in the US.