It took 40 years, but Brazilian democracy finally produced a proposal to make the fairer.
Last week, the government released its income tax. It is a very moderate step, very cautious, but in the right direction.
The reform gave complete exemption of income tax for those who earn less than $ 5,000 per month. Between $ 5,000 and $ 7,000 per month, the citizen will also have a discount, higher if it is close to five, smaller if near seven.
The exemption affects the social class most debated by political analysts in recent years: those who have escaped extreme vulnerability, but are still far from the standard of consumption of the “traditional” middle class. It’s a lot of people: the government estimates that the reform will benefit about 10 million people.
As everything has a price, the government estimates that it will stop raising R $ 25.84 billion a year with the change. To compensate for this breach, the government goes from the rich income.
To twice the public of the carioca championship final that gave the title of 2025 to Mengão. This class now pays an average income tax rate of 2.5%.
When Haddad announced the renovation last year, in that pronouncement that so much Furdunço generated, the plan was more ambitious: to make those who earn more than $ 50,000 per month were forced to pay at least 10% income tax.
That is, Haddad wanted the rich to pay at least the same percentage that a military policeman pays today (in government bills, 9.8%).
The proposal was responsible for part of the increase in the dollar at the time. After all, the reason that the rich pay so little income tax is that (LCA, LCI, dividends etc.). If there is a minimum rate for the rich, at least part of this income will be taxed, which would make these investments less attractive. When in doubt, the people ran to the dollar (and there they found it, but that’s another story).
In the new proposal, several of these investments will remain exempt. And the government will now only require the subject to pay the same rate as the PM if he earns more than $ 100,000 per month. Between $ 50,000 and $ 100,000 there will be a minimum rate, but it will start very small and grow as the income reaches close to $ 100,000.
Everyone knows this is right. The proposal to make Brazilian taxes more progressive was even in the Arena program, the party that supported. But no one had done so far.
According to Guilherme Klein of the USP Macroeconomic Macroeconomic Research Center (MADE), Brazilian taxes are currently progressive – this is, who earns the most paid a larger rate – up to the richest 1%, who earns more than $ 30,000 per month. From then on, they become regressive: the richer the rich one, the lower the rate.
Reformation does not eliminate this regressiveness at the top, but should reduce it considerably.
Anyway, people who earn very well will have to sacrifice a little to help the teacher and the PM. I think it’s good.
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