3 ms·

a little context: Brazil in the past had a tax called CPMF (contribution over finnacial moviment). It was a tax you had to pay 0,38%.everytime you would move m

a little context: Brazil in the past had a tax called CPMF (contribution over finnacial moviment). It was a tax you had to pay 0,38%.everytime you would move money and pay for somethin. It was collected in the source, and was a cascade tax because it was charged in every step of the logistic chain, including the sale for the final consumer. Because of the way the tax was created (contribution insted of a tax or imposto in portuguese), this means by law the money need to be destined to a specific target (public health). But because the goverment would use it to balance its accounts insted of invest in the public helth system it was extinct in 2007. But ever since then, the return of this tax is the wet dream of every govement that came in power, and in the last 2 theres been serious talks to tax digital transactions in a type of new CPMF. And thats what wores me when the goverment start talking about abolishing paper money.

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carlosjobim 3y ago
Look to neighboring Argentina to see the results: People will open accounts in foreign countries and have their money in dollars or euros. The national currency will be worth nothing, as everybody tries to escape it.
ElectricalUnion 3y ago
> It was a tax you had to pay 0,38%.everytime you would move money and pay for somethin. Important untaxed exceptions were pension income, "wage earner" income and stock trading (this last one always baffled me). > this means by law the money need to be destined to a specific target (public health). But because the goverment would use it to balance its accounts insted of invest in the public helth system it was extinct in 2007. CMPF funding could only be used by healthcare, pensions and social welfare. Universal healthcare systems are expensive. Brazil (and any other country, really) universal healthcare system needed and had a reasonably big budget that was paid basically by CPMF alone, so all the other combined taxes and contributions paid for everything else. The government, by law, could not "move" the funds to anything else. The reason it was extinct is because it was a direct tax over wealth translation of "the establishment"/"the banked class" - around that time more that 60% of Brazil was unbanked and therefore not directly affected. Now that Brazil no longer has a contribution specifically destined to healthcare and pensions, both it's universal healthcare system and pension system are in a much worse state.

deleted 3y ago

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carlosjobim 3y ago

Look to neighboring Argentina to see the results: People will open accounts in foreign countries and have their money in dollars or euros. The national currency will be worth nothing, as everybody tries to escape it.

ElectricalUnion 3y ago

> It was a tax you had to pay 0,38%.everytime you would move money and pay for somethin. Important untaxed exceptions were pension income, "wage earner" income and stock trading (this last one always baffled me). > this means by law the money need to be destined to a specific target (public health). But because the goverment would use it to balance its accounts insted of invest in the public helth system it was extinct in 2007. CMPF funding could only be used by healthcare, pensions and social welfare. Universal healthcare systems are expensive. Brazil (and any other country, really) universal healthcare system needed and had a reasonably big budget that was paid basically by CPMF alone, so all the other combined taxes and contributions paid for everything else. The government, by law, could not "move" the funds to anything else. The reason it was extinct is because it was a direct tax over wealth translation of "the establishment"/"the banked class" - around that time more that 60% of Brazil was unbanked and therefore not directly affected. Now that Brazil no longer has a contribution specifically destined to healthcare and pensions, both it's universal healthcare system and pension system are in a much worse state.