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Flavio Maluf sees the need for taxation reform in Brazil

Flavio Maluf is one of the most prominent businessmen in the country of Brazil. As the son of the founder of Eucatex, he was able to take that company from being a small paper manufacturer and turn it into one of the most important manufacturers of building supplies, automotive parts and furniture in the country. Today, Eucatex is a diversified manufacturing company that is involved in everything from paint to plate glass and high-end home finishings.

But throughout his career of successfully building Eucatex into a powerhouse of industrial and building supplies, Flavio Maluf ran into the severe problems imposed on him and other entrepreneurs by the high levels of taxation that have been endemic to Brazil for over a generation. Maluf blames his high levels of taxes on a fundamental misunderstanding of how economics actually works in real societies. View ideamensch.com to learn more.

Maluf says that the endemic corruption it throughout Brazil not only means that the tax money extracted from productive sectors of the economy is ill spent on boondoggle programs and outright theft on the part of public officials, but it also means that many of the most important companies in Brazil are willing to spend the resources necessary to offshore much of their operations.

Maluf says that any attempt by a state to tax its citizens above a certain point is akin to a dog chasing its shadow. It’s simply cannot ever reach its stated goal because the goal itself is structurally impossible to achieve. Maluf says that taxing corporations beyond a certain level will always lead to those corporations finding ways to offshore their operations. This is due to the simple fact that many countries around the world will gladly compete for the presence of multi-billion-dollar companies, no matter where the bulk of their final sales are made.

Flavio Maluf suggest a number of concrete tax reforms to avoid the massive losses to the Brazilian economy that will certainly occur when productive companies flee to other jurisdictions. He says that one of the best ways to keep the Brazilian economy vibrant and growing is to allow companies to retain the money that they would have spent on taxes at to instead invest those funds in the community and jobs. Read more: https://www.crunchbase.com/person/flavio-maluf

 

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