In a nod to the middle class, former president Luiz Inácio Lula da Silva (PT) will bring to the electoral program next week a promise to readjust the income tax table, which has not been done since 2015. The proposal is to make the cumulative correction of the seven years.
According to calculations by Lula’s team, the accumulated inflation in the period is around 50%.
With the readjustment, the range of income tax exemption would rise to R$ 3,000. Today, the exemption range is up to R$ 1,903.98. That is, those who earn little more than one minimum wage pay income tax.
The readjustment of the exemption band would have the effect of pushing the others.
The values will have to be recalculated, but, in a merely illustrative simulation, based on the current intervals, it can be said that those who earn between 3,000 and 3,900 would pay the rate of 7.5%. On yields in the following range, up to 4,800, the rate of 15% would be levied. The rate of 22.5% would be levied up to approximately R$5,700. The maximum rate would fall above this value.
Today, those who earn more than R$4,664 pay the maximum rate.
“We want to take the exemption range to where it should be if the readjustment had been made, with this, the other ranges will be affected and the entire middle class will pay less income tax”, said one of the members of the program’s writing committee. of PT government, economist Guilherme Mello.
According to Mello, in the event of Lula’s election, the correction of the table would be implemented within a tax reform proposal.
The loss of revenue caused by the readjustment of the IR table, he says, would be partially offset by taxation on the distribution of profits and dividends, in addition to other measures such as combating tax evasion.
“The loss will be offset in the taxation of the richest”, said the economist.
According to Mello, the levy of a tax on profits and dividends would also be progressive. The proposal is to make adjustments to equate taxation on capital income with taxation on labor income. At the same time, there would be a reduction in taxation on the company’s profit.
The goal is, in the end, to maintain the current total load, but guarantee the company an effective tax rate within the international average.
In the 2018 campaign, Bolsonaro promised that he would readjust the income tax table, but he did not fulfill his electoral promise. With the rise of inflation in the last two years, the lag reached a historic peak.
According to Mello, the readjustment was a practice of previous PT governments that Lula intends to maintain in an eventual third term.
Lula is in first place in the polls of voting intentions for the Presidency of the Republic, ahead of Bolsonaro.
At the start of the second round of this year’s presidential race, the PT marks 49% of the voting intention measured by Datafolha in its first survey of this stage of the race. If the election were today, 44% say they would vote for the current president.
The undecided are 2%, and blanks and nulls add up to 6%. The poll is a snapshot of the moment and does not necessarily reflect the vote that candidates will have.
Collaborated Alexa Solomon.
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