Change in income tax reduces inequality in Brazil, pointing out an expert economy

Last Tuesday (18), the bill (PL) sent to the Congress by President Luiz Inacio Lula Da Silva (PL), Income Tax Exemption (IR) for income of up to $ 5,000 (IR) and R $ 50 thousand people earning more than a monthly tax of Brazil close to many balanced tax systems such as France and Germany. Economics professor Project in the Federal University of Minus Garies (UFMG) and Clara Janan Break.

“More balanced countries in Europe are more progressive taxes. If Brazil does this change, it will consult these countries,” the teacher told Brazil.

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The project proposes that discounts on income are between $ 5,000 and 000 7,000 from those who receive up to $ 5,000 per month.

On the other hand, this proposal creates an rate of more than R $ 600 thousand per year or a rate of R $ 50 thousand per month. The tax on the riches guarantees the so -called tax neutrality, that is, the loss of the collection with the poor exception is compensated for the collection of rich.

10 million stops paying income tax

According to the Finance Ministry estimates, 10 million Brazilians stop paying IR, which represents R $ 25.84 billion tax waiver. This amount will be compensated for tax collection of 141,300 people, which are currently exempted income, such as dividend.

Still according to the farm, Nine out of ten Brazilians paying for a full or partial exemption. More than 26 million taxpayers (65%) pay nothingTaxing on high income affects only 0.13% taxpayers and 0.06% of the population.

To Agansia Brazil, economist Clara Bountc explained that the tax justice means “more people who receive more people and pay their income more.” She sets an example of a $ 5,000 -earn and $ 500 taxpayer, which represents 10% of his income. Already, a person who earns 000 500,000 and pay $ 50,000 is paying 10%, which does not configure her, tax justice.

Sao Paulo (USP )’s Administration, Economics and Accounting (FEA) Faculty, a researcher, is a researcher, a researcher, who is paying a lot of taxes to you, regardless of your income. In addition to the income distribution policies, she believes that tax justice is crucial to reduce inequalities in a country.

She predicts that they are still there, although the teacher has seen as a stage of reducing the inequality of the proposed changes Is not enough. According to Made calculations, a 15% rate for riches brings a more balanced tax burden, causing the rich and middle class to experience the same effective tax effect.

Finance Minister Fernando Haddad defended the proposal and said that the effective middle class rate was 10%. “The great merit of this proposal is that it opens a way to discuss tax justice,” Haddad said in an interview with Bom Dia Minister Bom Dia on Thursday (20) and Brazilian Communication Company (IBC).

For a bronch, the R $ 50 thousand limit per month for progressive tax is sufficient, but yet the so -called “super rich” has not yet reached. She believes that these people are paying more taxes with progressive growth.

Another factor that contributes to tax odds, according to the teacher Indirect taxIt mainly affects low -income users, they pay a higher ratio in their income on products and services.

Special versions

Brek said that the first part of the tax reform, which was consolidated and granted earlier this year, did not completely solve the problem, as it was treated separately by the reform of direct tax (income) and indirect tax. She argues that two versions are made in a comprehensive manner to correct the distortions.

Over time, the income ranks facing taxes can be corrected by inflation, thereby reforming the desired income groups.

Income odds

In Brazil, according to IBGE, the richest 10% income is 14.4 times higher than the poor 40%. The government uses this inequality to justify the necessity of PL approval. Minister Haddad pointed out Brazil is in ten countries with distribution of garbage income in the worldAccording to him, the community should be explained.

“We are in the distribution of worst income in the world. We have to explain to the same society. Brazil is in the world’s worst income distribution,” said Haddad Good morning minister.

Outraged in Congress

To become law, the PL needs to be accepted by representatives and the Senate. In the legislative process, the project may be changed by members of Parliament.

The Mayor, Hugo Mota (Republican-PB), said the proposal should be assessed by the sensitivity of the Congress, but that the changes to improve actions were not dismissed. Analyst of Trends Consulting, Zono Lem, predicts Plai in terms of tax justice, although it warns that the riches can be taxed during processing.