Keeping the value of Auxílio Brasil at R$ 600 is inevitable, for social and political reasons, although the program is very bad and needs urgent reform. Approving the Income Tax exemption for those who earn up to R$5,000 per month is a shot in the foot that will cause bleeding during Lula 3.
But the transitional government is already debating putting the project in the package that it wants to pass in Congress by the end of the year.
The measure is socially unfair. People who receive up to R$ 5,000 would in fact stop paying Income Tax. Only the Federal Revenue has the most accurate data, but with such an exemption ceiling, perhaps only 7 million out of 31 million taxpayers or declarants would continue to be obliged to declare or also pay IR.
It seems to reach a lot of people and therefore seems fair. But there are about 100 million people working in the country. The majority, therefore, would not benefit (not to mention the jobseekers and the chronically unemployed).
The exemption would also benefit those who would continue to pay the IR, the richest people in the country. No matter the creature’s income, everyone will no longer pay tax on the R$5,000 they receive.
It can be argued that, later on, Lula 3 and his associates will invent some way to collect more tax from the richest, perhaps through a higher rate on profits, dividends, other income or on assets.
Know there. The fact is that the government will exchange a certain and huge loss of revenue for an unknown.
It is also not known exactly how much the loss of revenue would be. The current calculations, in addition to being half guessed from generic data, are only accounting, without taking into account economic effects.
Assume that the loss of revenue is around R$ 150 billion. It is the approximate annual cost of Auxílio Brasil at R$ 600 per month, plus a few new beneficiaries. Seems fair? Is not.
The IR table may need to be readjusted, but even that is debatable. Income taxes are one of the fairest (and yes, the richest have to pay a lot more).
Lula 3 has great social pretensions. Who knows which ones you will try to put into practice. To do so, it will need money that it no longer has or will run out of, spending more in the 2023 Budget. That is, right away, the government will already be borrowing more money, creating more public debt and paying interest of almost 14% per year. year (interest that goes, of course, to the richest, the government creditors).
One of the national priorities is to improve children’s schooling. Wonderful kindergartens and kindergartens could make the poorest children reach the stage of literacy in conditions similar to those of the daughters of the rich.
It would be a place where they could be safe, fed, and accompanied. Mothers and fathers could work with peace of mind. It is a program with short, medium and long term effects. It is not the responsibility of the Union, but the federal government could cover the cost, as well as contribute to the expansion of the network of full-time schools for older children.
Lula 3 also wants to increase public investment. You will need to put money into improving the SUS. He wants to spend it on nonsense, too, as a subsidy for a big company, again. Even if it only stays in the merits, essential and urgent and socially fair, it barely has money. In addition to reallocating spending, Lula 3 needs to increase revenue. To lose R$ 150 billion is, therefore, to worsen the fiscal problem (unlimited growth of the debt), a matter for which there is no solution so far and which could undermine your government.
Chad-98Weaver, a distinguished author at NewsBulletin247, excels in the craft of article writing. With a keen eye for detail and a penchant for storytelling, Chad delivers informative and engaging content that resonates with readers across various subjects. His contributions are a testament to his dedication and expertise in the field of journalism.
