Impacts of the 'simple tax' in society: an analysis of revenue and jobs generated by the micro, small businesses and individuals by micro entrepreneurs - DOI: http://dx.doi.org/10.16930/2237-7662/rccc.v14n42p55-69

Abstract

In 1996, Microenterprises' (ME) and Small Enterprises' (EPP) tax burden was reduced by the creation of the Integrated System for Payment of Taxes and Contributions of Micro and Small Enterprises (SIMPLES), which is a special unified regime applied to collect federal taxes and contributions of such companies. This tax reduction is an important waiver of revenue to the state, which represents a cost to the country and justifies the importance of this study. The objective of this paper is to analyze the collection of 'SIMPLES' tax and the consequent generation of jobs by ME, EPP and Individual Micro Entrepreneurs (MEI), in order to verify its benefits to the society. As a research tool, a literature review was made and data was collected from the period 2002-2013 and the analysis of these was made by a descriptive statistics. It was found that tax collections for the SIMPLES showed a growth more than three times higher in relation to the collection of other regimes in the period 2007 to 2013. Moreover, it was observed that despite ME, EPP and MEI have a significant participation in the employment number, this share decreased during the study period. It was found that since 2009, with the influence of MEI, the average revenue per company has decreased in SIMPLES.