Reining in Brazil’s Informal Economy
The gray market thrives in Brazil, where the informal economy generates nearly 40 percent of the national income. Many companies don’t pay their taxes and ignore regulations, thereby gaining an unfair advantage over their law-abiding counterparts while hurting the nation’s productivity. Brazil’s onerous bureaucracy is partly to blame: burdensome regulations, high taxes, and weak enforcement conspire to encourage evasion because the benefits outweigh the relatively … [ Read more ]
Content: Article | Authors: Heinz-Peter Elstrodt, Joe Capp, William B. Jones Jr. | Source: McKinsey Quarterly | Subject: International – Americas