The Debate Over Income Tax Has Gained Strength Again in Brasília and Can Bring Direct Impact on the Pocket of Millions of Brazilians. The Proposal Under Discussion Seeks to Relieve the Tax Burden on the Middle-Income Population, Which in Recent Years Has Felt More and More the Weight of Taxes on the Family Budget
The Chamber of Deputies Approved Today the Urgency Request for the Project That Exempts Income Tax for Those Who Earn up to R$ 5,000 Per Month.
The Decision Allows the Proposal to Be Voted Directly in the Plenary, Without Going Through Committees.
The Government Requested Priority Because It Considers the Measure Central to Its Economic Agenda. The Expectation Is That the Text Will Be Analyzed as Early as Next Week.
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Political Articulation
President Lula (PT) Has Been Meeting with Party Leaders and Party Presidents to Guarantee Support. The Palácio do Planalto Hopes to Use the Proposal as an Electoral Asset.
The Report by Deputy Arthur Lira (PP-AL) Had Already Been Approved in July by the Special Committee. He Kept the Main Points Suggested by the Government but Expanded Some Exemptions.
Text Details
The Project Provides That the Revenue Loss, Estimated at R$ 25.5 Billion Per Year, Will Be Compensated by Taxing People Who Earn Above R$ 50,000 Per Month.
For Incomes Starting at R$ 600,000 Per Year, There Will Be a Minimum Charge, with a Progressive Rate Up to 10% for Those Earning Above R$ 1.2 Million.
An Example Cited in the Report Shows That Taxpayers with an Annual Income of R$ 900,000 Will Pay 5%, Which Equates to R$ 45,000.
The Solution, According to Lira, Should Raise R$ 76.21 Billion in Three Years.
Changes Made by the Reporter
The Original Text from the Government Provided for Partial Exemption up to R$ 7,000. The Reporter Raised the Ceiling to R$ 7,350, Which Benefits About 500,000 Additional People.
He Also Backed Down from the Idea of Reducing the Maximum Rate to 9%, After Public Pressure Against Benefits to the Wealthiest.
Another Change Was the Decision to Exempt Accumulated Dividends from Taxation Until December 31. The Justification Is to Avoid Legal Disputes.
Who Will Benefit
The Exemption Will Affect About 10 Million Brazilians. Each Taxpayer Is Expected to Have a Annual Savings of R$ 4,356.89, According to Estimates from the Chamber.
The High-Income Group That Will Start Contributing More Represents Only 0.13% of the Population, About 141,400 People.
The Considered Income Includes Salaries, Rent, Dividends, and Other Earnings. Profits from Asset Sales, Inheritances, Savings, Indemnities, and Pension for Severe Illness Are Excluded.
For Those Living Abroad, There Will Be a 10% Tax on Dividend Remittances, Regardless of the Amount Sent.

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