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Brazilian Congressmen Are on Sale But Lula Is Still Haggling PDF Print E-mail
2007 - May 2007
Written by Carlos Chagas   
Tuesday, 08 May 2007 09:18

The Three Powers Square in Brasília, Brazil Two weeks ago, gathered in Brasília, close to three thousand Brazilian mayors tried to get from the government a share in the CPMF's revenue, a tax charged on every bank check written in Brazil.   President Luiz Inácio Lula da Silva said no to the request but ended up granting a compensation: he pledged to increase by 1% the amount due the mayors through the Municipalities Participation Fund.

Instead of getting 22.5% of that money, they would now receive 23.5%. Something around an additional 1.4 billion reais (US$ 700 million). The kind of handout no beggar would refuse.

Well, the government offered the necessary constitutional amendment, signed by the House leader, José Múcio Monteiro, and the measure went for debate. All right, wouldn't you think? Not really. All wrong, all terrible, all hideous.

Because the Finance Minister, Guido Mantega, trampling on the president's order and disregarding his wish, sent three deans of discipline to Congress demanding that the amendment discussion be halted, that is, he overturned and ruled against the paltry 1% that the municipalities would get.

The worst is that everything stays like that. Lula will say that he didn't know a thing about it, the finance Minister will claim that there is no money right now and the alms will be postponed until the Greek calends. The municipalities should make do with whatever they don't have. This is a portrait of Brazil where blows are inflicted from top to bottom.

Business Counter

There is no need to know what God created first, the egg or the chicken. The Lula administration promises that the PMDB (Party of the Brazilian Democratic Movement) will get its slots in the government's second echelon if the party behaves according to the administration's interests in Congress.

In turn, the PMDB says it's ready to vote with the government as long as it gets the nominations for the second echelon posts. The result is that, faced with the congressional inquiry on the air traffic, known as Apagão Aéreo (Air Blackout) in the House, the PMDB prepared two lists of legislators to integrate the inquiry committee.

The first one has three accommodating representatives, the kind that will do anything his master orders until the investigations are killed. A second list contains so-called independent legislators, who presumably will take a little more seriously their mission of investigating possible irregularities at the Brazilian air authority Infraero and neighboring state organs.

That's the way things are: with no nominations in advance, there will be an inquiry commission ready to investigate in earnest.  With nominations in advance, all the trouble can just be buried and forgotten.

It doesn't matter who started this unfortunate phase of political relationship with Congress, whether it was the executive or the legislative who required that the other side recite the Saint Francis Prayer that says "For it is in giving that we receive." The result is the same: the Three Powers Square in Brasília has turned into an immense business counter.

Forgetful

Brazilian Harvard professor Mangabeira Unger has accepted Lula's invitation to head the newly created Secretariat of Long-Term Actions, which will give him the level of minister. We don't know what he is going to propose for the future.

As long as he doesn't suggest new immediate terms of office for president Lula, an always dangerous possibility, any other of his proposals will be ignored. If we don't know what's going to happen to Brazil in the next fifteen minutes, how can we take seriously plans for ten, twenty or fifty years from now?

Who knows if our sociologist du jour will suggest our entrance in paradise, or maybe the participation of our country in the campaign to recover the Red Sea's whiskerless shrimps.  Or still the creation of the United States of Latin America, with its capital in Chavezburg, a new city to be erected in the Amazon.

The question here is to find out who has outdone whom. Whether president Lula gave the kid glove treatment to his old enemy for whom the current government was the most corrupt of the Republic, or professor Mangabeira who may now boast of having humiliated a president who ended up forced to acknowledge his intellectual attributes.

They say that the new minister first seduced late Ulysses Guimarães (a senator), and then Leonel Brizola (former Rio governor) who is also dead, and, later still, Ciro Gomes, who is Brazil's National Integration minister. All of them were presidential candidates.

It can't be true. The three characters showed they possessed the capacity, the public spirit and the ethics, in their attempts to get to the Planalto palace. They wouldn't be fooled by someone who has been fooling his readers year after year.

Carlos Chagas is a veteran Brazilian journalist who writes for the Rio's daily Tribuna da Imprensa. He welcomes your comments at carloschagas@hotmail.com.

Translated from the Portuguese by Arlindo Silva.



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Comments (24)Add Comment
Brazilian Congressmen Are on Sale But Lula Is Still Haggling
written by João da Silva, May 08, 2007
If we don't know what's going to happen to Brazil in the next fifteen minutes, how can we take seriously plans for ten, twenty or fifty years from now?


Is Mr.Chagas seriously suggesting that our country does not need long range plans? I think that I am missing some points that he wants to put forth to his readers.

They say that the new minister first seduced late Ulysses Guimarães (a senator), and then Leonel Brizola (former Rio governor) who is also dead, and, later still, Ciro Gomes, who is Brazil's National Integration minister. All of them were presidential candidates.


Both Ulysses and Brizola are dead and I agree.But Ciro Gomes is alive and according to what I read, it was Ciro who recommended Unger to head this new ministry.Is Mr.Chagas saying that Ciro is another naive guy?. Again I miss the point.

Another possibility is that Mr.Chagas is trying to say that the the stage is set to prove to the Public at Large that Dr.Unger is a clown,burn him thoroughly and return him to Harvard.

It is an interesting article and only Mr.Chagas will be able to furnish more clarifications on my questions.
Naïve ? Who is naïve.....in Brazil ?
written by ch.c., May 09, 2007
Certainly not the politicians !
But those who trust and elect these politicians.

And if 1 % equals an additional US$ 700 millions as written in the article, it means this tax alone brings a total of Us$ 70 billion or around 7-8 % of your total GDP, before PPP.....of course !
This is the "privilege" Brazilians have to do banking transactions !
Plus all the other taxes....of course !!

I am probably wrong, but I know of no other country with such a high banking transaction "privilege" !
May be someone has more infos and details !!!


Thus in my view, the naïves are the ones who pay such a tax, and the clever ones are the ones who charge the tax and steal part of it for their own benefit !
Brazilian Congressmen Are on Sale But Lula Is Still Haggling
written by João da Silva, May 09, 2007
Sorry, may be Mr.Chagas along with Mr.Betting and Mr.Bonner
To:Ch.C/Naïve ? Who is naïve.....in Brazil ?
written by João da Silva, May 09, 2007
Thus in my view, the naïves are the ones who pay such a tax, and the clever ones are the ones who charge the tax and steal part of it for their own benefit !



Unfortunately (or fortunately), today I am in a mood to agree with you.So sad,né?
...
written by aes, May 09, 2007
As to which came first the chicken or the egg it is self evident. All chickens come from eggs, but it is not necessary for the egg to have come from a chicken. Ergo the egg came first.

As to Unger, the development of infrastructure, particular the infrastructure of Law is paramount.
Without Law and its enforcement there is no order.

Bovespa manifests the transition of Brazil into a significant global economic player. Over 50,000 and climbing Brazil has gained an economic credibility that is naiscent. But the world of investment capital will not tolerate pilfering or a lack of transparency.

Your contention that Brazil cannot plan beyond 15 minutes is at best cynical and at least naive.
It is the eponential advancing of Brazilian exports that places Brazil in an economic 'cat bird seat'.

It is essential to plan, long term infrstructure development, inorder to meet the economic demands of global exportation. Since money is the driving force in all geopolitics, that which is required to manifest the continuence of this 'train of economic premacy' will have out.

Unger is a necessity. Business, and politics being a reflection of business, demands long term planning. Unger is infinitely qualified to develop, like Pinochet's group from the U. of Chicago, a long term solution to Brazil's economic and social conundrums.

BTY what happened to Operation Hurricane? What happened to the strike by the leading investigators? And where is the press in all of this? Your silence is contributary to the problem.

The singular problem plaguing Brazil is the Law. With out Law, and its enforcement there can be no progress in Brazil's problems, in all of its myriad forms. Money is a serious matter in the world of global investment. Trust in the ability of a country to prosecute the Law is fundamental to international investment.



TO:Abilardo Ernesto da Silva (a.k.a. AES)
written by João da Silva, May 09, 2007
Unger is a necessity. Business, and politics being a reflection of business, demands long term planning. Unger is infinitely qualified to develop, like Pinochet's group from the U. of Chicago, a long term solution to Brazil's economic and social conundrums.

BTY what happened to Operation Hurricane? What happened to the strike by the leading investigators? And where is the press in all of this? Your silence is contributary to the problem.


You know, this is the point I am trying to make.The press is very fast in clapping hands when something bad happens and silent when some hard calls are made. I was amazed when Mr.Chagas made the comment that it is impossible in Brazil to plan for the next 15 minutes. It does demonstrate cynisism and lack of self confidence.A serious journalist would think twice before making such an irresponsible comment. Sorry Carlos, you lost my respect.
this cpmf tax...
written by bo, May 09, 2007
is ludicrous. And I'm sure you can imagine the amount that my business has paid since it's inception. The people of this country are taxed to breath and where is the return?
The necessity of Unger and planning to the econoic future of Brazil
written by aes, May 09, 2007
The U.S. Chamber called breaking the patent a ``major step backwards'' for Brazil just days after the Office of the U.S. Trade Representative upgraded the country's compliance score with international intellectual property protections for its crackdown on counterfeiting and piracy.

``Brazil is working to attract investment in innovative industries that rely on IP, and this move will likely cause investments to go elsewhere,'' the Chamber's vice president for international affairs, Daniel Christman, said in an e-mailed statement.

http://www.bloomberg.com/apps/...refer=home
this cpmf tax...
written by João da Silva, May 09, 2007
Is here to stay for ever, though may be with different names.Formerly it was called ICMF and was created supposedly for the betterment of health care.It was changed to CPMF and I dont remember the reason for the change.

As long as the current percentage is not increased, I am willing to grit my teeth and pay with a smilies/grin.gif
Barão João Ginecologista da Selva do Sul Esq.
written by Professor, May 09, 2007
Formerly it was called ICMF, It was changed to CPMF

Next it will be PMF (premenstrual fatigue).
AES
written by Professor, May 09, 2007
Since you are interested in Gold, Currencies and the like:
http://www.youtube.com/watch?v=_3jdQxDC7pA




Brazil ranked 121 http://www.doingbusiness.org/EconomyRankings/ World Bank
written by aes, May 09, 2007
Economies are ranked on their ease of doing business, from 1 – 175, with first place being the best. A high ranking on the ease of doing business index means the regulatory environment is conducive to the operation of business.
Economy Ease of Doing Business Rank Starting a Business Dealing with Licenses Employing Workers Registering Property Getting Credit
Singapore 1 11 8 3 12 7
New Zealand 2 3 18 10 1 3
United States 3 3 22 1 10 7
Canada 4 1 32 13 22 7
Hong Kong, China 5 5 64 16 60 2
United Kingdom 6 9 46 17 19 1
Denmark 7 14 6 15 36 13
Australia 8 2 29 9 27 3
Norway 9 21 14 109 6 33
Ireland 10 6 20 83 80 7
Japan 11 18 2 36 39 13
Iceland 12 16 30 42 8 13
Sweden 13 20 17 94 7 33
Finland 14 18 35 111 15 21
Switzerland 15 27 38 24 11 21
Lithuania 16 48 23 119 3 33
Estonia 17 51 13 151 23 48
Thailand 18 28 3 46 18 33
Puerto Rico 19 8 91 33 46 21
Belgium 20 37 48 23 158 48
Germany 21 66 21 129 42 3
Netherlands 22 38 80 86 20 13
Korea 23 116 28 110 67 21
Latvia 24 25 65 123 82 13
Malaysia 25 71 137 38 66 3
Israel 26 15 101 82 150 7
St. Lucia 27 43 10 29 51 101
Chile 28 32 40 58 30 33
South Africa 29 57 45 87 69 33
Austria 30 74 50 103 28 21
Fiji 31 55 27 28 71 21
Mauritius 32 30 49 64 156 83
Antigua and Barbuda 33 22 15 40 71 101
Armenia 34 46 36 41 2 65
France 35 12 26 134 160 48
Slovakia 36 63 47 72 5 13
Georgia 37 36 42 6 16 48
Saudi Arabia 38 156 44 21 4 65
Spain 39 102 53 161 33 21
Portugal 40 33 115 155 98 65
Samoa 41 91 51 11 60 83
Namibia 42 86 19 44 127 33
Mexico 43 61 30 108 79 65
St. Vincent and the Grenadines 44 29 1 48 101 83
Mongolia 45 55 34 61 17 65
Kuwait 46 104 109 20 69 83
Taiwan, China 47 94 148 154 24 48
Botswana 48 93 136 62 34 13
Romania 49 7 116 101 114 48
Jamaica 50 10 93 26 107 101
Tonga 51 23 37 4 108 117
Czech Republic 52 74 110 45 58 21
Maldives 53 31 9 5 172 143
Bulgaria 54 85 140 100 65 33
Oman 55 81 127 51 14 143
Belize 56 103 4 14 117 83
Papua New Guinea 57 69 102 19 64 101
Vanuatu 58 65 33 96 91 117
Trinidad and Tobago 59 35 81 27 154 48
Kiribati 60 72 76 18 62 101
Slovenia 61 98 63 146 97 48
Palau 62 45 42 7 13 117
Kazakhstan 63 40 119 22 76 48
Uruguay 64 134 56 58 138 33
Peru 65 92 121 158 32 33
Hungary 66 87 143 90 103 21
Nicaragua 67 62 82 32 127 48
Serbia 68 60 157 73 110 33
Solomon Islands 69 76 40 53 159 143
Montenegro 70 83 154 76 106 83
El Salvador 71 123 90 70 49 33
Dominica 72 24 51 50 78 101
Grenada 73 50 12 34 145 83
Pakistan 74 54 89 126 68 65
Poland 75 114 146 49 86 65
Swaziland 76 112 16 47 140 21
United Arab Emirates 77 155 79 57 8 117
Jordan 78 133 70 30 110 83
Colombia 79 90 60 77 56 83
Tunisia 80 59 110 92 71 101
Panama 81 26 72 139 63 13
Italy 82 52 104 101 53 65
Kenya 83 111 24 68 115 33
Seychelles 84 42 69 84 50 159
St. Kitts and Nevis 85 105 7 35 136 117
Lebanon 86 116 99 43 95 48
Marshall Islands 87 13 5 1 172 117
Bangladesh 88 68 67 75 167 48
Sri Lanka 89 44 71 98 125 101
Kyrgyz Republic 90 41 143 63 31 65
Turkey 91 53 148 146 54 65
Macedonia, FYR 92 76 86 117 87 48
China 93 128 153 78 21 101
Ghana 94 145 83 120 113 117
Bosnia and Herzegovina 95 141 160 95 139 7
Russia 96 33 163 87 44 159
Ethiopia 97 95 59 79 146 83
Yemen 98 171 39 53 43 117
Azerbaijan 99 96 162 66 59 21
Nepal 100 49 127 150 25 101
Argentina 101 106 125 138 74 48
Zambia 102 67 123 80 119 83
Moldova 103 84 119 128 47 101
Vietnam 104 97 25 104 34 83
Costa Rica 105 99 57 65 37 33
Micronesia 106 39 11 12 172 101
Uganda 107 107 110 8 166 159
Nigeria 108 118 129 56 170 83
Greece 109 140 55 166 94 83
Malawi 110 89 117 68 90 65
Honduras 111 138 88 81 89 21
Paraguay 112 135 124 169 48 48
Gambia 113 124 73 25 130 143
Lesotho 114 113 75 91 129 117
Morocco 115 47 133 156 45 143
Algeria 116 120 117 93 152 117
Dominican Republic 117 119 77 127 126 33
Guatemala 118 130 165 105 26 48
Iran 119 64 167 141 143 65
Albania 120 121 161 113 76 48
Brazil 121 115 139 99 124 83




cont.
written by aes, May 09, 2007
...
written by Professor, May 09, 2007
...
written by Professor, May 09, 2007
Question for Bo
written by GTY, May 10, 2007
Bo,

Actually a couple of questions. What is your estimate of the total tax rate on middle class Brazilians.

Do you have to declare and file income in Brazil with the IRS?
gty
written by aes, May 10, 2007
Your question is ingenuous and rhetorical. You have to file any amount over $8,500. That is net net. I am sure like you there is an infinity of business deductions that for you probably add up to, on paper a net loss.

Especially the business yacht, the entertainment of buisness chronies , the business stonecrabs, the business trips to Brazil, the hotels, restaurants, ad infinitum, the standard deduction of your children, the support of your brother in law, who probably is considered by now a dependent, depreciation on your investments in Brazil. You are probably losing money.
To:GTY/Question for Bo
written by João da Silva, May 10, 2007
I thought you are in CA. You dont have to ask Bo this silly question of yours.AES has already responded to you. Poor Bo,AES,Professor and my good self are law abiding citizens and paying all the f**king taxes including theat f**king CPMF.

As AES said, the support of your brother-in-law can be tax deductible, provided you prove that he is living off your back.Of course it is too difficult to prove unless he goes to the tax man in a wheel chair and screams and yells to the entire world that he is your dependent. In any case I think you are a dead duck from the point of view of RF.
TO:GTY
written by João da Silva, May 10, 2007
Especially the business yacht, the entertainment of buisness chronies , the business stonecrabs, the business trips to Brazil, the hotels, restaurants, ad infinitum, the standard deduction of your children, the support of your brother in law, who probably is considered by now a dependent, depreciation on your investments in Brazil. You are probably losing money.


What AES is suggesting in his own subtle language is that you have been violating the norms of both IRS and RF. You are not only losing money,but also a fugitive from the laws of our land as well as U.S. My suggestion at this point of time is :If you are in CA,better cross over to Mexico. If you are still in FL, take a boat to Cuba.

Gee, GTY, I cant believe that you are so dumb.
João
written by Professor, May 10, 2007
If you are in CA,better cross over to Mexico. If you are still in FL, take a boat to Cuba.

smilies/grin.gif
this is not to much on the line but
written by forrest allen brown, May 12, 2007

Forum: Living in Brazil
Topic: Anyone know about Joao Pessoa?
Posted By: tamashin


What about this then?
Foreigners Warned to Avoid João Pessoa
By Jim Wright
BBC News, Sao Paulo



Brazilian police have warned foreigners to keep away from the northeastern town of João Pessoa as an international gang of criminals is suspected of trying to lure them there as part of a conspiracy to exploit them.
Police report that a group of criminals arrived in the town recently and began an Internet campaign to try and make gullible foreigners believe that it was a paradise where foreigners could live in security and avoid the violence and misery which is prevalent in the region. The site also offered sexual enticements.
Colonel Dorival Machado da Silva of the military police said there was evidence that the gang – believed to be headed by an Englishman and an American – had enticed and encouraged middle-aged and elderly men in the US, UK, France, Italy and Scandinavia to come to the town in the hope of a better life, including finding wives. They would offer to arrange accommodation and to meet them at the airport and handle daily matters.
“We know of one man who arrived in Recife from the US who was met by an American who told him he would take him to João Pessoa. The American offered to change money and take the man´s luggage to his car and when the man´s back was turned had simply disappeared. In another case, a Scandinavian visitor was taken to the town by a man who claimed to be English and suggested they have meal in a beachfront restaurant. When the Scandinavian went to the bathroom the “Englishman” had disappeared along with the visitor´s belonging – money, passport, everything.”

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this is not to much on the line but
written by João da Silva, May 12, 2007
Hi Forrest, I suggest that you post this info on all the other threads.It is a really serious matter.Thanks.
...
written by bo, May 12, 2007
Question for Bo
written by GTY, 2007-05-09 19:25:56
Bo,

Actually a couple of questions. What is your estimate of the total tax rate on middle class Brazilians.

Do you have to declare and file income in Brazil with the IRS?


My estimate of the total tax rate on middle class brazilians would be 40%. Those that actually pay that rate is another question.

As far as declaring in brazil and the U.S. the answer is that I must declare in both countries. Simply because I have income in the U.S. and here in Brazil because I am a partner in a brazilian business. Even though I have never made one cent in brazil I still must declare. And several years ago when I opened my current business with my foreign partners I actually declared that I made 80,000 reais, pessoa fisica, because it was the only way I could get lines of credit with the banks. Hence, I've paid income tax in brazil yet have never had income.
respond this topic
written by CASEY29Browning, July 09, 2011
All people deserve very good life and mortgage loans or commercial loan can make it better. Because people's freedom relies on money state.

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