The issue is the fiscal impact of the measure. The exemption is immediate, but the revenue from the 'rich' takes time. Meanwhile, fiscal risk and interest rates rise and the economic scenario worsens.

The Democracy of Taxes: When Everyone Pays the Price

The Minister of Finance, Fernando Haddad, stated that the focus of the compensation for the project that expands the tax exemption for individuals earning up to R$ 5,000 per month is on the portion of the population earning more than R$ 1 million per year.

According to the head of the economic ministry, the compensatory measure is expected to affect 0.2% of Brazilians. The statement was made during the signing ceremony of the bill that provides for the expansion of the Income Tax (IR) exemption for individuals earning up to R$ 5,000 per month.

To compensate for the exemption, the federal government proposes the implementation of a minimum tax for the so-called super-rich. The project presented by the government foresees a rate that will increase gradually. “Our focus is to target those individuals with an income exceeding R$ 1 million.

It's a staircase that starts with R$ 50,000 per month, thus, R$ 600,000 per year. It's a very gentle staircase, reaching its maturity when it hits R$ 1 million in annual income,” he stated.

Source: CNN Brazil

Now a brief personal conclusion of mine:

It is truly a brilliant strategy: on one hand, the government decides to tax the super-rich to promote social justice; on the other, it allows the prices of basic food items to rise, ensuring that everyone, regardless of income, feels the weight of taxes. In this way, no one is left out of this "great" contribution to the country.

After all, nothing is more democratic than making everyone, rich and poor, share the economic burden equally. It is a true masterpiece of fiscal balance, don’t you think?

Note: My text contains irony!!







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