As one of the most outspoken critics of over-taxation within Brazil, Flavio Maluf has been a lightning rod for some of the most divisive issues that have stricken the country in the last decade. But he has always been a man of the truth, unafraid to speak his mind and defend the principles that he believes will lead to a better future for the country that he loves. Read more about FlavioMaluf at Blog do Ronco
Flavio Maluf inherited the Eucatex corporation from his father. At the time, it was a successful but relatively small paper producer and owner of large forestry resources throughout Brazil. However, Flavio Maluf was able to transform the company into one of the most important producers of building supplies and other industrial processes in the country. Today, Eucatex ranks among the most important manufacturing companies in the country Brazil. Eucatex is involved in everything from the manufacture of automotive parts to the production of paint and varnishes as well as high-end furniture.
Having built the company into one of the most important diversified manufacturing companies in the country, Maluf saw firsthand the problems associated with high levels of taxation and the incredibly stifling effect that that this had on his ability and the ability of other entrepreneurs to grow their businesses effectively. Maluf saw up to half of all the profits that his company made being confiscated by a corrupt government that was wasting the money on personal luxury items for the government officials and on pork barrel projects that were economic dead ends for the country.
Maluf believes that this has much to do with the low rate of business formation and the perennially underperforming economy throughout Brazil. He has proposed a few concrete tax reforms, most of which involve the ability of businesses to spend money that would have otherwise gone to taxes on local community investments and investments in their own companies. This is not merely an excuse for business owners to keep more money or offshore it to foreign bank accounts. Maluf believes that allowing businesses to choose reinvestment in the community and jobs is far superior to handing that same money over to corrupt officials.