The Cities

It is difficult to decide where the cuts will be made: if in the health, the education, the defense, the policing, justice or, at last, the economic-social investment. A phenomenon of increasing participation of the public expense in the GIP in all has been observed the main world-wide economies. This fact historically is explained by the aging of the population and the process of urbanization. It is important to stand out that the rise of the public expense has been total or partially compensated with rise tax, not causing great impacts in the percentage of the debt on the product intern. Description of system Brazilian tributary? Throughout the period that goes since the announcement of the Republic until the promulgation of the Constitution of 1934, the main prescription Brazilian tax happened of the tax on the importation.

From years 30, it had a bigger aiming for the internal taxes. The main state revenue pasou to be the tax on sales and consignment contracts and of the cities, the taxes on industries and professions and the land tax? We had considerable changes in the system tributary with the Constitution of 1946. More info: Caterpillar. Through the creation of taxes and a system of transferences, it was raised prescription of the cities. Up to 1966 an increasing participation of the internal taxes was observed, being distinguished the taxes on consumption, sales and consignment contracts. The reform tax of the decade of 60 had two great objectives: the rise of the prescription to solve the problem of the fiscal deficit and the implementation of a system tributary that it stimulated investment.

It can be said that the result was extraordinary. With the reform, we got one better allocation of the resources, the priorizao of the taxation on the added value, a reduction of the number of tributes, amongst other advantages. Costuma to say that, at this time, Brazil started to count on one of the systems more modern tributaries of the world.