Ciro Gomes proposes an average minimum income of BRL 1,000 per household

The PDT presidential candidate, Ciro Gomes, defended this Wednesday (10) the creation of a universal minimum income program of R$ 1,000 on average per household, at an estimated cost of R$ 170 billion per year, or in around 6% of GDP (Gross Domestic Product).

This program, which would be called Eduardo Suplicy, in honor of the current PT councilor in São Paulo, would include the BPC — an assistance benefit granted to low-income elderly or disabled people —​, rural retirement and the current Auxílio Brasil. The Auxílio Brasil of R$600 alone has an estimated annual cost of R$150 billion.

The pedestrian detailed the program at an event in Brasilia promoted by Sindifisco Nacional (a union that represents the tax auditors of the Federal Revenue) together with Fenafisco (National Federation of National and District Tax Authorities) and Anfip (National Association of Tax Auditors of IRS).

According to him, the program would be financed by the Budget for Aid Brazil, the BPC, rural retirement and the collection of tax on large fortunes, with a rate of 0.5% to 1.5%. “That closes the bill, we’ve done all the simulations. No one needs to doubt it, and it will have constitutional status,” he said.

Ciro said that the minimum income program would have existing conditionalities, such as vaccination and school attendance, but he stressed that the idea is that it has exit doors and is anchored in the country’s growth. “With this, I am committed to generating five million jobs in the first two years,” he said.

The presidential candidate also proposes a change in Social Security to include part of the income associated with the PAYG system and another linked to capitalization.

In addition to taxing large fortunes, Ciro defends the recreation of the tax on profits and dividends, which would generate around R$ 70 billion. He admitted the possibility that the country’s tax burden could increase with the new taxes, but argued that this would be offset by a reduction in the collection of taxes on the poorest and on consumption.

“The first big thing is to raise the income tax table. If I put a rate of 35%, I will gradually increase the value of the exemptions to a reasonable value and I will create a smaller range for those who start”, he pointed out. “The idea is that, at the limit, the tax burden remains as it is.”

At the event, Ciro Gomes criticized programs such as Refis (tax recovery). “In my government, there will be no year of Refis, as there was not in the government of Ceará. Either pay or it will be executed”, he said.

Earlier, the presidential candidate was at an event at FenaPRF (National Federation of Federal Highway Police). There, Ciro criticized the presidential veto of the special salary adjustment for police officers in 2023. Bolsonaro rejected the passages that authorized restructuring and salary recomposition of these careers, which are part of the government’s political support base. The president, however, signed into law the provision that paves the way for a broader readjustment to servers next year.

“Looks like a fraud to me [o veto]because there was an expectation, as they fought with Congress and Congress approved it, that the president would agree with that”, said the candidate, before saying that he could not elaborate on the subject for not having studied the subject. .

He said, however, that it is “perfectly possible” to give the police a readjustment, as long as there is a discussion of the spending cap in the country.