In an article in the newspaper Folha, Joao Camargo cites the “failed” experiences of countries that have tried to combat inequality by taxing wealth and states: “The rich contribute to development.”
247 – CNN Brasil Chairman Joao Camargo has criticized the recent interim measure signed by President Luiz Inacio Lula da Silva (PT) that provides for a 15% to 20% tax on profits from exclusive funds, also known as “super”. rich money”, and introducing the bill that would tax Brazilian residents’ capital invested in tax havens. In condition Camargo – who also chairs the board of directors of Esfera Brasil Group, told Folha de S. Paulo – that taxing the wealthy is inefficient and can lead to negative consequences.
The temporary measure and bill were introduced with the aim of combating inequality and increasing government revenue. However, Joao Camargo highlighted the international experience, especially in Europe, where taxation of the wealthy did not produce the expected results. He pointed to countries such as Germany, the Netherlands, Italy, Ireland, Denmark and Austria that have recently abolished net wealth taxes.
Camargo believes that the financial mobility of the rich in a globalized world allows them to quickly allocate their money to more attractive places, which leads to lower revenues and a deterioration in social indicators. He mentioned the example of France, which witnessed the flight of billions of euros due to strict financial policies, and the subsequent abolition of these policies led to the return of money and an increase in the number of millionaires in the country.
In addition, the Chairman of the Board of Directors of Esfera Brasil referred to the case of Argentina, which agreed to impose an “extraordinary” tax on great wealth in 2020. In the first year of its effectiveness, the government collected much less than expected, while Uruguay reduced its taxes. Rules for attracting Argentine investors
Camargo stressed that taxing the wealthy is difficult to impose, subject to arbitrariness and does not produce as large revenues as might be expected. He said Brazil must seek responsible solutions to combat inequality and rebuild public accounts, without increasing the already high tax burden and without compromising the ability of Brazilian entrepreneurs to invest in the country’s future.
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“The Brazilian who built his legacy must be admired as the hero of a successful journey. He not only exemplifies achievement, but also contributes, in a very tangible way, to national development. It is he who invests, undertakes, risks, innovates, creates wealth, generates jobs and pays Huge taxation “It is an essential part of the machine that produces economic growth,” reads an excerpt from the publication.
At the end of the article, Joao Camargo defended dialogue with the government, the National Congress and Finance Minister Fernando Haddad, as the way to build a responsible approach to dealing with these challenges, highlighting that “getting rich is not easy.” A sin, but rather an example of achievement that contributes to national development.”
It is also worth noting that the Speaker of the House, Arthur Lyra (PP-AL), has already indicated that Congress will not approve taxation of the rich and billionaires. Learn about some of the repercussions of Joao Camargo’s article on the networks:
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