Paying the (Hungry) Lion’s Share
Since moving to Brazil in 2003, I've had mixed feelings, it has become a love-hate relationship. I love the country most of the time, except for three months a year, from March to May, when I must file my taxes. Lion is the nickname of the Brazilian internal revenue service, the tax man in other words, and the lion's greed has massively grown over time. Globally, paying taxes is disliked, but in Brazil, it infuriates scores of taxpayers, including me, it is an existential concern. I keep wondering who is benefiting from my big cheque to the lion. My funds have little chance to go to a countryside school, a rural hospital, let alone to a needy teacher. On the contrary, my money may end up wasted on pink elephant projects, the election campaigns of shady politicians, the super salaries of judges I have never heard of or, and in a worst-case scenario, be embezzled.
The judiciary is as dysfunctional and corrupt as the
legislative branch; it is slow and inefficient with high rates of impunity. Worse, the credibility of the Supreme Court
(STF) has been undermined by abuse of power and flip-flopping decisions
regarding high level corruption issues. Former
president Lula da Silva was processed for bribery and later released from jail after
his conviction was overturned on procedural grounds. Lula is Brazil’s current president, but the
cloud of corruption has never dissipated.
This week, the STF had ordered another former president, F. Collor de
Mello, a senator, to report to jail for bribery and money laundering. In 1992, Collor had been impeached and removed
from the presidency following serious corruption allegations, but in 1994, the
STF acquitted him of these charges.
Judges are the highest paid public servants; they make more
money than parliamentarians who are far from being miserable (US$ 91,000.00/year
in 2024, pocket money compared with what they earn in total). This amount is 18 times the average Brazilian
wage! Sarcastically, some of my friends believe
that higher salaries for judges may lead to increased corruption, their
thinking also applies to politicians.
Politicians and federal judges are like leeches, (sanguessuga
in Portuguese), which was the name of a famous corruption investigation. They live comfortably off taxpayers’ money. Brasilia, the federal capital is the richest
city in Brazil
In 2024, Brazil scored 34/100 and ranked 107th/180
in the perceived corruption index, it is one of the worst performances in Latin
America (Transparency International); with a 100 score, a country is squeaky
clean. The election of Lula in 2022 offered hope of clean-up, but contrary to
expectations the situation worsened. By
granting asylum to the convicted former first lady of a neighboring country, Brazil
seems to proudly carry its corruption badge and is promoting a form of international
corruption solidarity.
Taxpayers who manage their income well are upset about
government waste. In 2024, Brazil faced
an 8% budget deficit and a creeping up debt of 80% of GDP. To forget this disastrous situation, Lula travelled
to Rome to pray for a miracle on the coffin of the deceased Pope Francis. To increase his miracle chances, Lula invited
18 fellow travelers, politicians and judges. The large size of the Brazilian delegation
attracted interest; the country is famed for its infamous European junkets, all
paid by taxpayers.
Fatalistically, I shall send my cheque to the lion hoping
that some of the money at least, goes to a good cause, like for example, reimbursing
the millions of defrauded pensioners of the Brazilian pension institution, INSS. Every year, INSS falls victim to some scam or
fraud; this year is no exception, but the amount is spectacular. Over a 6-year period, insiders stole R$ 6.3
billion (US$ 1b) from unsuspecting pensioners.
FROM BRAZIL:" This is a very well written blog covering the endemic corruption in Brazil.
ReplyDeleteThe INSS is a shameful organization . People spend years contributing
for their pensions and when the time comes for them to receive what is their right the INSS finds petty excuses in order not to pay them . This is totally unacceptable and has been going on for years affecting the lives of the not so well to do who were relying on their pensions for their old age . I have heard stories of people who actually died without ever receiving a penny for their contributions .
Also in relation to the STF Brazil is the only country where a judge judges cases where he is the victim and the accuser and nobody does anything about it ."
From Brazil:"Excelente, B. Deveria ser publicado em um relevante jornal. Muito bem escrito."
ReplyDeleteIt would appear that a commonality across countries is the level of corruption and poor governance. Fortunately in Australia, now that we are retired, I simply do our tax returns online - and I receive a minimal financial return and this normally happens in July
ReplyDeleteHi, we also file on line, but the check is not virtual!
DeleteFROM FRANCE:" Un tel pillage est scandaleux, révoltant mais qui pour y remédier? La soupe est trop bonne pour y renoncer.Et dire que les français se plaignent!.
ReplyDelete"
From France:: You wrote that your blog is a sum up of what you read in the media. Luckily, Brazil still has a free press!"
ReplyDeleteFrom Brazil:" Concordo com vc na maioria dos pontos abordados, infelizmente. Tenho os mesmos sentimentos.
ReplyDeleteConsigo amenizar isso, pensando nas coisas positivas desse país e sempre com a esperança de mudança…
Fica a sugestão para vc escrever um blog que aponte os pontos positivos do Brasil e justifique sua volta pra ca …. Beijo carinhoso! 💋☘️
I love Brazil 9 months a year. Many of my blogs addresse this love.
DeleteFrom Brazil:" Amiga: realmente este blog é tao realista e sincero, que so tenho a agradecer e elogiar sua escrita tao perfeita em todos os sentidos."
ReplyDeleteFrom Brazil:" It makes me sad to see all these things precisely because I love this country (of which I became a resident 49 years ago). If there were less crime and corruption, Brazil s citizens would be less "unequal". It would be a fairer society, with probably enough money to provide good health and education systems for all.
ReplyDeleteI think one of the roots of corruption is impunity: it took the Judiciary 33 (!!!) years to put a former president into jail. I have no doubt that he will be out of jail in a year or two, on grounds of ill health, age and/or good behaviour.
There is always enough money for what used to be called "trem da alegria", the latest example being an "international" event in Europe where 90 % of the participants belong to the Brazilian Judiciary.
There is never enough money for the real priorities which, in my mind, are health and education."
From the above contributor. "My comment to your excellent blog, which speaks to my heart, us above. I don t know why, again, I could not put it directly in the "Comments" section although I disabled all third-party cookies. "
ReplyDeleteEu li a coluna do Bernardo de Mello Franco (25/5): " Cada deputado tem direito a R$ 37 milhoes em emendas impositivas por ano, sem contar as emendas de bancada e as de comissao."
DeleteEsse negocio e bom demais@
From France:"Je comprends que la corruption active avec enrichissement personnel abusif soit choquante. Mais que dire d'un état comme la France qui ferme les yeux sur certaines pratiques ou passe-droits par lassitude, couardise, ou manque de courage politique, n'est ce pas là aussi une forme de corruption passive. Certes il n'y a pas enrichissement personnel mais le politique gagnera des voix, des budgets etc...."
ReplyDeleteBeatrice, this is your best blog ever! You have described the situation of all of us who are taxpayers in Brazil perfectly! If only we could actually do something about it????
ReplyDeleteFROM THE US:" How frustrating and how sad, no.light at the end of the tunnel?"
ReplyDeleteFrom UK:"Yes I have read your blog. I don’t always reply as I am busy with other things to do! Yes it’s a pain paying taxes and none of us have any say over what they are spent on, but as the saying goes, there are only 2 certainties, death and taxes. Do you think it’d be any better paying French taxes??
ReplyDeleteIn France, you pay taxes, money is often wasted, but rarely openly stolen.
DeleteFrom the US:"In fact, I was about to offer a comment. I am always amazed at your excellent command of English. I never asked where and how you learned it. Second, I must say Brazil despite my long held expectations and hope, never seems to graduate to the next level.look at Vietnam and even Cambodia, not to mention China or S. Korea. Isn't there a collective sense of nationhood? Drastic inequalities in education, income and even pride as Brazilians? Of course Brazil is not alone in this. And it's the same story in the rest of Latin America with maybe Chile as a possible exception. Does soccer unite Brazil even the uneducated and downtrodden?"
ReplyDeleteGreat comment above from your friend. However, unfortunately I do not think this will change soon, it's a long background of slavery continuous corruption to favor a few....the few being a large circle embedded in all the social strata."
ReplyDeleteAs always want many thanks for sharing and yes your English and blogs are a delight🍀🌺🍀🌺🍀🌺🍀🌺😘
The above comment is from a friend in Sao Paulo.
DeleteFrom France:" Surrealiste et triste pour les brésiliens."
ReplyDelete