PT discusses Lula’s economic plan with new Bolsa Família and wealth taxation

The seven parties in the coalition of former president Luiz Inácio Lula da Silva (PT) began to outline the general lines of the government plan that indicate a shift in the direction of the country’s economy and a reformulation of the social area, including the possibility of changing the brand of the income transfer program for Novo Bolsa Família.

Members of the group responsible for the document reported to the Sheet that, in the economic area, the orientation is to increase investment and propose a tax reform with tax simplification and creation of taxation on large fortunes.

To increase investment, including public investment, Lula’s campaign is discussing reformulating the spending ceiling (a rule that prevents public expenditure from growing above inflation) and seeking new sources of public and private financing.

In the PT, there are those who defend the repeal of the spending ceiling, in general — but in other parties, there is a wing that seeks a middle ground. That is, revoking the ceiling only for certain types of expenses, such as social expenses, and keeping it for other expenses.

The guidelines for Lula’s government program are still under discussion and the preliminary version needs to be approved by party bodies.

The objective, according to the document under debate, is to exchange economic liberalism for a strategy of “fair, solidary and sustainable development”. In addition, the government plan intends to have public policies to fight inflation, labor reform and also proposals to strengthen state-owned companies.

Lula’s allies also want to include in the official document a passage defending the Amazon and dealing with climate emergencies.

In the social area, the focus should be on reformulating the income transfer policy with the resumption of the Bolsa Família structure, in a model that would replace Auxílio Brasil (created at the end of last year by President Jair Bolsonaro in place of the old program) .

PT advocates changing the name of the program, which can be called Bolsa Família or Novo Bolsa Família. The campaign wants to emphasize in the government plan the need to fight hunger and poverty, in addition to strengthening the social assistance network.

Other points under discussion are: appreciation of the minimum wage above inflation, expansion of labor rights and renegotiation of debts of families and companies.

Although the campaign has not yet detailed the proposals, the conversations point out that the tax reform to be defended was prepared by PT, PC do B, PDT, PSB, PSOL and Rede, and presented at an event at the Chamber of Deputies in October 2019 .

At the time, the suggested version foresaw the creation of a VAT (value-added tax) that combines ICMS (state) and ISS (municipal). The states would be responsible for the collection, and would share the revenue with the municipalities.

The proposal elaborated by the parties indicated the creation of an IGH (tax on large inheritances), which would be charged for amounts above R$ 15 million. In addition, half of the proceeds of an IGF (tax on large fortunes) would go to education. Another item is the maintenance of the exemption of the basic food basket.

The general lines of the government plan are being analyzed by representatives of the seven parties that make up the “Let’s go together for Brazil” coalition, from Lula’s ticket with former São Paulo governor Geraldo Alckmin (PSB).

After meeting this Thursday (2), the group disclosed only the three structuring axes of the program: social development and guarantee of rights; economic development, socio-environmental sustainability and combating the climate crisis; and reconstruction of the State and sovereignty and defense of democracy.

For now, the discussion is focused on a team made up of two representatives from each party and coordinated by former minister Aloizio Mercadante (PT), president of the Perseu Abramo Foundation and coordinator of Lula’s government program.

After the guidelines are approved, the content of the government program will be designed and presented to candidates and campaign coordinators. The idea is to present the party’s guidelines next week.

In addition, the campaign of former president Lula wants to launch a platform on the 12th to receive contributions from civil society to the pre-candidate’s government plan. The expectation is that, after a period of 30 days, some suggestions can be incorporated into the program.

Even after this deadline, the platform will continue to receive ideas. This period of submission of proposals must extend until the end of the electoral campaign.

There is also the idea of ​​holding talks with members of civil society and entities such as CNI (National Confederation of Industry), Contag (National Confederation of Agricultural Workers) and SBPC (Brazilian Society for the Progress of Science).

Guidelines under discussion on the Lula-Alckmin ticket:

• Expand investments

• strengthen state-owned companies

• New Bolsa Família

• Tax reform and income distribution

• Public policies to fight inflation

• Real increase in the minimum wage

• Renegotiation of debts of households and companies

• Fair, solidary and sustainable development

• Defense of the Amazon