Post by account_disabled on Mar 4, 2024 8:35:37 GMT
The beginning of a new government brings a series of changes and, with them, issues such as tax reform and justice in the Brazilian system return to the agenda. You hear everything, both when it comes to pointing out problems and especially when it comes to proposing solutions. SpaccaIt is not the purpose of this article to debate the subject extensively, which would require a length that is incompatible with this column. The aim is to comment on just one of the defects usually attributed to the Brazilian system, which is its high burden. And, of the various taxes that could be collected to assess their burden, Income Tax (IR) is chosen. Is it, in Brazil, very high? The question, in fact, needs to be replicated with another, before one can answer more precisely: elevated to whom? Regarding individuals, there are four progressive rates, 7.5%, 15%, 22.5% and But knowing whether these percentages are high or low involves a comparison.
Something, or someone, can be high or low, depending on who, or what, it is compared to. A man may be tall, by the standards of Brazilian jockeys, but short, by the elite athletes of American basketball. A 20-story building is tall compared to a 10-story building, but very low compared to a -story building. Let us then compare the Brazilian tax system with that of another country. Look at Austria. There, the maximum personal income tax rate is It can be said, then, that it is higher than the EL Salvador Mobile Number List Brazilian rate, aExactly double. Let us not forget, however, the second question. High for whom? The reader may be wondering: – Isn’t greater than objectively? Is even mathematics trying to relativize here? is less than 50, of course, but such percentages apply to bases, the so-called "calculation bases". Therefore, it is not possible to determine whether a tax burden is high or low by comparing tax rates alone. Let's go back to the basics. In Brazil, the maximum rate.
Applies to income exceeding R$4,664.68 per month, which corresponds to just over R$55 thousand per year. In Austria, the 55% rate only reaches income exceeding 1 million euros, something close to R$5.5 million, per year. But what about the exemption limits? In Brazil, the limit corresponding to the so-called "existential minimum" is R$ 1,903.98 per month, a value above which income is subject to the first rate, 7.5%. In Austria, in turn, the exemption limit is 11 thousand euros per year (916.66 euros/month), which means that, at the current exchange rate, even income that in Brazil is already subject to the maximum rate, in that other country they would still be exempt. So let's go back to the question. Brazilian cargo is high for whom? Compared to the Austrian one, for taxpayers earning higher incomes it is low.
Something, or someone, can be high or low, depending on who, or what, it is compared to. A man may be tall, by the standards of Brazilian jockeys, but short, by the elite athletes of American basketball. A 20-story building is tall compared to a 10-story building, but very low compared to a -story building. Let us then compare the Brazilian tax system with that of another country. Look at Austria. There, the maximum personal income tax rate is It can be said, then, that it is higher than the EL Salvador Mobile Number List Brazilian rate, aExactly double. Let us not forget, however, the second question. High for whom? The reader may be wondering: – Isn’t greater than objectively? Is even mathematics trying to relativize here? is less than 50, of course, but such percentages apply to bases, the so-called "calculation bases". Therefore, it is not possible to determine whether a tax burden is high or low by comparing tax rates alone. Let's go back to the basics. In Brazil, the maximum rate.
Applies to income exceeding R$4,664.68 per month, which corresponds to just over R$55 thousand per year. In Austria, the 55% rate only reaches income exceeding 1 million euros, something close to R$5.5 million, per year. But what about the exemption limits? In Brazil, the limit corresponding to the so-called "existential minimum" is R$ 1,903.98 per month, a value above which income is subject to the first rate, 7.5%. In Austria, in turn, the exemption limit is 11 thousand euros per year (916.66 euros/month), which means that, at the current exchange rate, even income that in Brazil is already subject to the maximum rate, in that other country they would still be exempt. So let's go back to the question. Brazilian cargo is high for whom? Compared to the Austrian one, for taxpayers earning higher incomes it is low.