TUDO VAI FICAR MAIS CARO.... PARTE 2

Taxation of Foreign Products in Brazil

In this video, Leonardo discusses the taxation of foreign products in Brazil. He explains that all products coming from outside the country are supposed to be taxed, but many companies exploit a loophole by sending packages as if they were from individuals rather than businesses. A group of businessmen was lobbying for increased taxes and stricter enforcement, which Leonardo argues is hypocritical given their supposed support for small government.

The Issue with Taxation

• All products coming from outside Brazil are supposed to be taxed.

• The purpose of taxation is twofold: to generate revenue for the state and to protect domestic industry.

• Leonardo believes that taxes should be used to provide basic services like healthcare, education, and housing.

• However, he argues that Brazil's tax system disproportionately affects the poor because it taxes consumption more heavily than income.

Loopholes in the System

• Many companies send packages as if they were from individuals rather than businesses to avoid paying taxes.

• Packages under $50 sent from person-to-person are not taxable.

• Companies also undervalue their packages on customs forms to avoid paying higher taxes.

Hypocrisy of Businessmen Lobbying for Increased Taxes

• A group of businessmen was lobbying for increased taxes and stricter enforcement on foreign products.

• These businessmen claim to support small government and free markets but were advocating for policies that would hurt consumers who rely on foreign goods.

• Leonardo argues that these businessmen should instead focus on making their own businesses more competitive rather than trying to level the playing field by increasing taxes on others.

O governo Lula propõe novo arcabouço fiscal

The government of Lula, historically against the spending ceiling established in the Temer government, is proposing a new fiscal framework through Haddad, Minister of Finance. This new framework aims to control government expenses and increase revenue by taxing purchases made on Chinese marketplaces.

New Fiscal Framework

• The new fiscal framework is a set of rules to control government expenses so that it does not spend more than it earns.

• To make this work and generate a public deficit until 2024, the government will need to increase revenue by R$150 billion.

• One way they are considering doing this is by taxing purchases made on Chinese marketplaces.

Government Revenue and Taxes

• The tax on consumption instead of income in Brazil is too high at 60%.

• Lowering taxes would reduce barriers to entry for businesses and increase sales, leading to more jobs and economic growth.

• High import taxes lead to higher prices for consumers and hurt businesses.

Increasing Taxation

• Reports show that taxation on purchases from Chinese marketplaces is increasing with arbitrary values higher than those of the orders themselves.

• Some stores on AliExpress have stopped shipping products to Brazil due to complications with taxation.

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