About PPK will increase with collection, additional data about:
In the decade 2000 - 2010 although it increased tax revenues, we should point out at least two aspects that have not changed:
- No escalation: The VAT in 2000 accounted for 42.6% of total central government tax revenue, and in 2010 his weight rose slightly to 44.2%. If we add the ISC, we have more than 50% are indirect taxes. So it meets the principle of "ability to pay"?
- Low Pressure: The tax burden is low and volatile to redistribute. In the year 2000 was 12.3% of GDP in 2008 was 15.6% and for 2010 reached 14.8%. To 2007 (with regard to the crisis 2009) ECLAC showed that the tax burden in Brazil was about 25% of GDP in Chile about 20%. Additionally, and consistent with the previous point, in 2000 the VAT + ISC represented 8.3% of GDP, by 2010 the percentage rose to 9.3%.
Source: BCRP - Series Statistics
Authors
With these considerations, coupled with the most likely means that a new government as PPK not touch the tax system would be talking about the same margin for expenditure management. If about 95% of expenditure is hard, a variation of 1% recovery in flexible spending affects 20%, with serious consequences for the provision of services by the State.
On the other hand, the budget process, officially is counter-cyclical, but in reality programming seems to be a pro-cyclical: once made the collection (according to the pace of the economy and the current tax system) are assigned resources. To be truly counter-cyclical Should not be reversed? First estimate the demands for resources in a time horizon, and according to this system to raise the necessary revenues, which means a progressive tax reform to broaden the base and the tax burden.
Thus, if governments do not plan to touch the tax system to redistribute through adequate public services will be an election promise. See more
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