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131 points Traces | 2 comments | | HN request time: 0.418s | source
1. alpaccount ◴[] No.44443616[source]
I've replied to a comment with this but I'll leave it here.

Reducing inequality in Brazil (even a tiny amount) is a DEAD SIMPLE problem that is not in any way related to the government taking more money from people (rich or poor), but, rather, in taking LESS money:

> The collection of federal taxes on the reserve base, shows that of the amount collected by the IRS of Brazil, the majority of the taxes are based on consumption, with approximately 53% on average of the funds raised by Revenue Federal Brazil and continue accounting for more than half of tax (52%) charged by the agency. This tax structure is even more perverse when we add the taxes collected at the state and municipal levels, which bring in the largest source of revenue. The tax burden on consumption is regressive. In Brazil those who earn up to twice the minimum wage spend 26% of their income to pay indirect taxes, while the tax burden for families with income higher than 30 times the minimum wage amounts to only 7%. Excessive taxation on consumption depresses demand directly affecting the economy, reducing the consumption of the middle and lower income families.

We're talking about a country where minimum wage is 260ish dollars a month, and a macbook costs TWICE what it costs in the US, where people make much more. We're structured in a way where only rich people have access to anything. You can tax said rich people more, but they'll just keep being the ones that can afford anything at all.

source: https://en.wikipedia.org/wiki/Taxation_in_Brazil

replies(1): >>44466799 #
2. msgodel ◴[] No.44466799[source]
Yeah Brazil's issue isn't that it isn't taxing its people enough. As usual these things always just go after the middle class and sort people into destitute vs rich buckets. IE they exacerbate inequality.