Flavio Maluf is a prominent Brazilian businessman and one of the fiercest advocates for reducing the enormous tax burden that small businesses throughout the country currently experience. As the president and CEO of the Eucatex corporation, Flavio Maluf has been at the forefront of the Brazilian tax debates for over a decade.
Throughout that time, Maluf has seen the results, up close and personal, that ensue from overtaxing the very people who are the backbone of a country’s economy. Maluf says that overtaxing small business is one of the single most harmful things that any politician could impose upon his constituency. The overtaxing of small businesses leads to a dramatic drop in investment in both the community and the businesses themselves. This leads to the eventual closing of many small businesses while promoting the interest of the much larger corporations who can afford to spend the millions of dollars necessary to successfully offshore their operations and shield their income from burdensome taxation. Learn more about Flavio Maluf at InfoMoney
Maluf has proposed a number of concrete measures to reduce the tax burden on small businesses. He cites the project known as Zona Franca de Manuas, which was able to radically transform the West Amazonas region of Brazil, causing it to go from one of the most impoverished and neglected areas of the country into being a genuine powerhouse of manufacturing activity. This, says Maluf, was the direct result of intelligent taxation policies, particularly those that included the subsidizing of small businesses and the allowance of more capital retention by small business owners to invest in both their own companies and in the communities in which they operated.
Maluf says that the record of such programs is very clear. When small businesses are empowered it to keep more of their hard-earned money for the purposes of reinvestment in both their own operations and in the community as well, this leads to broadly salutary effects on the economy of the country as a whole. There simply is no substitute for the organic growth that occurs when small businesses are able to pursue their own destinies in the way in which they see fit.