Finance Minister Fernando Haddad said on Monday that rational debate with the United States, separating the economic issue from politics, will start at any time. For Haddad, the charging of Brazilian products by 50% is a shot in the foot for Americans, who will pay more for Brazilian coffee and meat.
“It’s a foot in the foot for the American economy. It makes no sense to pay more for coffee and meat. The tariff makes no sense from an economic point of view. A rational debate will start at any time, separating the political issue from economic,” said Haddad, who participated this morning of the 16th edition of Macro Vision, an event promoted by Itaú BBA to discuss economic and political trends in the country.
Macro Vision takes place at the Rosewood Hotel in Sao Paulo and was opened by CEO of Itaú, Milton, Maluhy, who cited the uncertainties of external environments and, such as the behavior of the Federal Reserve (Fed), the Central Bank, in relation to interest rates, in the face of political pressures and how far the dollar depreciation, which has effects on the exchange in Brazil.
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Haddad said he has a program visit to the United States to attend the G20 meeting, the world’s twenty largest economies group, which takes place in November. He said that “the worst of the hypotheses” could be there with US Treasury Secretary Scott Bessent.
“I believe that in the worst we will talk about there. But perhaps, before that, the two offices mark a meeting,” said the minister, saying that he still does not know if he will attend a possible meeting between President Lula and the American representative, Donald Trump.
“This is with the president. But I may be,” he said.
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Haddad stated that the president of the United States may have the political preference they want and express it. But trying to use fare as a political weapon, he said, it is a mistake that should be corrected as soon as possible.
“And we are working on this direction. First, to explain how the powers work in Brazil. Here there is no autocrat. Here there are president, congress, has supreme. There is no autocrat in the executive,” he said.
IR exemption
The minister was optimistic about the approval of the income tax exemption for those who earn up to $ 5,000 in Congress. The vote is scheduled for Wednesday in Congress, according to the president of the house, Hugo Motta.
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Haddad stated that the discussion is mature in Congress, in the face of a context in which Chamber and Senate are getting right. He believes that the proposal that the government made was understood and well received by the actors in general.
“This week, very possibly, we will vote for income reform,” he said.
The exemption up to $ 5,000 is an old idea, recalled the minister, who was proposed by several candidates for president. And President Lula decided to fulfill the campaign promise, said Haddad, noting that to compensate for the loss of revenue the idea is to have a minimum income tax in the country, of 10% for an income of more than $ 1 million per year, not taxed.
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“It’s a very reasonable level even if we take consideration of the international experience,” he said.
For Haddad, taxes in Brazil, besides chaotic, are unfair.
“We are putting a little order in chaos and bringing justice,” he said.
