AsGryffynn said:
I mean everything. High taxes don't elevate the price that much.
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They do though. REALLY do. That's a reason why brazilian industry production shrink every year this decade. One of the proposals on taxe reform is to reduce IPI (industry/production tax) that can be as high as 60% of the final product price, and distribute among other fees like ISS (services taxes). I agree industry pays much more taxes than what they should but increasing service taxes will only punish middle class as we are the social class that uses the highest percentage of wages in services (well poorer classes uses most of their money buying basic goods like food, so right now they are most punished class)
What they really need to do is decrease production and trade taxes and increase estate taxes, but of course wealthier classes who really control politicians will never allow it
Moving forward, I do agree companies are abusive and increase the price much further than the taxes they pay in some industries just because they can and we have no power to stop them. If every car sold here is overpriced and collective transport sucks the only option left is using Uber. I had few college professors who given up their personal cars and now only uses Uber just to showcase how expensive is owning a personal car lol
As for how politicians use our money this is another whole discussion on its own (and I have some knowledge on this field, because until last Monday I used work in a company that works in government spending/accounting). Mind you 57% of our money is to public debt and other charges, 24% for social security and only 19% for true spending. I don't know jackshit about fiscal/financial expenses so can't give you any reason why we need 2,7 trillion BRL a year to pay public debt
For other expenses I must say the problem starts with the federation pact and how money is collected and distributed among federation, states and municipalities, we spend too much on administration and bureaucracy and bidding processes, especially civil construction works, are much more expensive than they should be, in short corruption is rampant. The size of country doesn't help and most system didn't go fully digital yet. Only last July 2019 a national unified accounting matrix system for all public units (prefectures, public companies, etc) entered into force
Each on of the 27 states has it own court auditors and they are extremely incompetent. In my state our auditors only defined the rules for disclosing spending with Covid-19 in June, 3 months after the outbreak so in April and May each city could use federal revenues for whatever they want WITHOUT REPORTING ACCOUNTS. When will our court audit that? Probably only in 2 years, because right now they are still auditing 2018
Will you be surprised if I say our public information access law was signed only in 2011?
