How heavy is the tax burden in Brazil and Argentina?
The tax burden in Brazil is very high and maybe even higher than the tax burden in the U.S. The taxes in Brazil though are levied in a different manner than they are in the U.S. The largest tax in Brazil is a 17% value added tax that is added to everything that is purchased in Brazil. This tax must be paid before products can be transported around the country so they are added to the price of the item when they leave the factory. If any agricultural inputs are imported, such as chemicals or fertilizers, an additional import duty is charged as well. In addition to the value added tax, farmers and landowners must also pay real estate taxes and income taxes as well. Many of the taxes in Brazil are included in what is charged for utilities such as phone service, electricity, water, and gas. Take gasoline for example. The price of gasoline (and diesel) in Brazil is controlled by the federal government and the government has kept the price of gasoline and diesel very high over the decades an
