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Comment · 1 year ago
In a perfect world without greed and corruption, I would agree with you. However, I live in Brazil, where the state is constitutionally mandated to provide all basic necessities (healthcare, education, etc.) and we have one of the highest tax rates in the world. Additionally, corruption here is absurd.

Despite having enormous budgets, the services the state provides are inadequate. Many people choose to sacrifice an additional portion of their income (on top of what they already pay in taxes) to access these services privately. Even with extensive social policies and taxes on virtually everything you do — salary, consumption, transfers, inheritance, literally everything — quality of life remains poor. High tax rates actually breaks development.

We must be cautious about supporting policies that tax the wealthy more heavily, because when the state considers someone earning $2,000 per month to be 'rich'—which already happens, as evidenced by the current income tax brackets (IRPF)—these measures won't improve anyone's life.

Comment · 1 year ago
How are they going to do this? If they increase the tax burden on people's salaries, they'll start working informally (I live in Brazil and currently see that people look for various ways to escape income tax, whether by opening a company or choosing not to register formally (and they're not rich, but the state considers them rich, even earning ~$32k per year)). If they force companies to pay, the tax burden will be diluted into products/services, falling on the poorest. The right path is to reduce the size of the state - these policies will only make life worse for the poor. In a world with scarce resources, this problem has no solution.

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