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Trump tax reform affects Brazil

As the focus of the reform is to give treatment to US companies, it is expected that as exports and a US trade account will be costly

Brasília - If approved by the US Congress, a tax reform advocated by US President Donald Trump may worsen Brazil's position in terms of international competitiveness. The change of the tax system in the main economy of the world can also contribute to increase the pressure of Brazilian businessmen for a reduction of corporate income tax.

As the focus of the reform is to give more beneficial treatment to US companies, an assessment of the IRS technical area is that as exports and trade relations with American vectors will stay ally.


Trump's intention is to reduce the tax burden on businesses and middle and high income classes. The text provides for the cut of 35% to 20% of taxes on companies. The taxation of American companies will be below the average of the OECD countries, at 22.5%.


Economist Bernard Appy, a former executive secretary of the finance ministry, says it is a proposal to increase pressure in Brazil to reduce the tax burden. In Brazil, corporate income tax is 34%. "There is a worldwide tendency to reduce the taxation of income tax, which will generate pressure here, too," he says.


The macroeconomic, risk and retirement point of view is a problem for the United States and accelerate the process of raising interest rates, with negative impact on Brazil in the future.

Jim Watson | AFP | Getty Images President Donald Trump participates in a tax reform kickoff event at the Loren Cook Company in Springfield, MO, on August 30, 2017.

Jim Watson | AFP | Getty Images

President Donald Trump participates in a tax reform kickoff event at the Loren Cook Company in Springfield, MO, on August 30, 2017.

Beaba

The tax reform rapporteur, MP Luiz Carlos Hauly (PSDB-PR), was recently in the United States and discussed points in the Trump project. "Our biggest concern is simplification, not even the beabá we did," he says.


The US proposal may become even more competitive, which may lead to a migration in the generation of higher-quality jobs, Fiesp's vice president, José Ricardo Roriz. "If you have a fall in the tax burden, (US) will be unbeatable," Roriz said. "If Brazil does not focus on competitiveness, and it is a way of taxing is fundamental, we will distance ourselves from the most competitive," he says.


For special presidential advisor Gaston Toledo, who has participated in the tax reform discussions, a change in the US tax system "will certainly affect international transactions."


According to him, the results around the proposal are still uncertain. "It is first necessary to know if this is acceptable to the US Congress, which needs to close the Budget. More information is from the newspaper O Estado de São Paulo.


Fonte:https://www.cnbc.com/2017/08/30/trump-on-tax-reform-i-dont-want-to-be-disappointed-by-congress.html


Escritor(a) Samuel Dias

Edição chefe Martha Cruz

Supervisão Eneida Beraldi


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