Despite having enormous budgets, the services the state provides are inadequate. Many people choose to sacrifice an additional portion of their income (on top of what they already pay in taxes) to access these services privately. Even with extensive social policies and taxes on virtually everything you do — salary, consumption, transfers, inheritance, literally everything — quality of life remains poor. High tax rates actually breaks development.
We must be cautious about supporting policies that tax the wealthy more heavily, because when the state considers someone earning $2,000 per month to be 'rich'—which already happens, as evidenced by the current income tax brackets (IRPF)—these measures won't improve anyone's life.
The state is just private individuals with a monopoly on violence. The incredible degree of corruption in Brazil wouldn't exist if people working for the state didn't have any special privileges.
The brightest minds leave the country or aren't able to reach its full potential.
We're talking about a country where the government has repeatedly been found of the largest corruptions schemes in human history.
> Many people choose to sacrifice an additional portion of their income (on top of what they already pay in taxes) to access these services privately.
In Brazil you pay taxes which are supposed to grant you health care, education, safety. None of that happens, so you pay (again) for private school, healthcare, insurance and so on. Anyone that lives/lived there knows this.