Former Finance Minister says the tax framework is “dead letter” and criticizes the exemption to go to those who earn up to $ 5,000
Maílson da Nóbrega economist and partner, 82, said Brazil has a “meeting marked ” with the economic crisis. For former government farm minister (1988-1990), the crisis will either fall in the lap of the current president (PT), “theU will fall in the lap of the next president early in the future government. Our meeting scheduled with the crisis will hardly go over the next 2 years ”these.
To support his prognosis, Maílson mentions studies that predict that in 2027, mandatory expenses would occupy the entire margin of the tax framework. The economist also refers to budgetary problems caused by greater narrowing in discretionary spending, which are non -mandatory expenses. Among these problems, he cites the lack of resources of (Brazilian Agricultural Research Company) and (Brazilian Institute of Geography and Statistics).
“No one knows exactly the moment the crisis settles. It is a spark. And one day everyone realizes that she came. If these studies are right, and I think they are, the collapse will happen until 2027. It’s just that. If this collapse comes earlier, the chance of the president ends [Lula] Reelect yourself ”he said in an interview with the site.
For the economist, the tax framework is “Dead Letter ” Since it was designed by the Minister of Finance, (PT), and, with changes, by Congress in 2023.
“You can only contain spending to prevent them from growing in real terms if a group of expenses does not grow more than average. Since social security, health and education spending grows a pace higher than the other expenses, the mandatory expense takes place. At some point, this goes wrong ”, stated.
The former minister also made criticism of the project, because the value “is higher than the average performance of Brazilian society ”and the moment of its approval is not adequate, because “The country is going through a delicate fiscal situation ”.
However, Maílson qualified the taxation of the richest as a “beautiful idea”And defended a minimal IR in the model debated in (Organization for Economic Cooperation and Development).The richest would pay tax proportionally. The minimum they have to pay, and I think until 10% is little. Could be around 15%”he added.
Trump’s tariff
The economist also commented on the imports announced by (Republican Party). Qualifying the president of the United States as a “illiterate” em “economic theory and a complete illiterate in history ”Maílson believes the plan is a disaster, but a “temporary disaster ”.
For the former minister, “The stupidity of Trump’s measurements is such that the world will not accept it all passively ”.
Maílson stated that Trump adopts an outdated economic model from the nineteenth century, when in international trade was the law of the strongest. “This is how the Western powers invaded China. This is how the US took part of the Spanish territory. It’s not today’s world ”he added.
“When the average American, who maintains 50% to 60% of his financial resources in stock, start to see that he is losing money, Trump will have problems“, These.
The economist was also skeptical about the theses that maintain that Brazil can benefit from Trump’s tariff, expanding its exports to the US and replacing markets that will have more expensive products in the country, such as Chinese.
Since January, when Trump the US presidency, cumulative fares of. In response, China implemented widespread announced tariffs on April 11. The tariffs of Brazil, also imposed on imports from 185 countries.
“Reasoning is only valid if this situation is permanent. To increase production and export to the US, not all companies have idle capacity. So they will have to do a project, see how they will finance, do the market study, structure a distribution base in the US… this whole process can take from 2 to 3 years ”said the economist, adding: “This is a winning war. And if everyone lose, Brazil has no way to win ”.
