November 6, 2019

BRACAGO:

Brazil's Massive Tax Code May Face Moment of Reckoning (Simone Iglesias and Murilo Fagundes,  November 5, 2019, Bloomberg)

At 7.5 tons, it's heavier than an African elephant.

At more than 7 feet, it's taller than LeBron James.

At 41,266 pages, it's about 85 times longer than the collected stories of Franz Kafka.

Vinicios Leoncio spent more than 1 million reais ($250,100) to assemble a volume of Brazil's tax code to demonstrate the absurdities of the system. For fun, he perches on top of his creation. "It's an attempt to make the stupidity of the Brazilian tax legislation visible," says the tax lawyer.

Fresh off its success in winning congressional support for a landmark pension overhaul, the administration of President Jair Bolsonaro has set its sights on revamping the tax code, a goal that has eluded prior governments. The lower house and the Senate have put forward their own plans. Vice President Hamilton Mourao promised on Oct. 23 that a new system will be in place by the middle of next year.

The stakes are high. Brazil's tax burden is close to 33% of gross domestic product, almost 10 points higher than the Latin American average. A sweeping simplification could boost GDP by 10% over 15 years, according to an analysis by the Center for Fiscal Citizenship, a São Paulo-based think tank.

Posted by at November 6, 2019 12:00 AM

  

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