The text of the first stage of the reform approved by deputies and senators points out that if new income taxation generates surpluses, they can be used to reduce payroll costs and taxes on consumption. Because it is through the tax paid when purchasing products that the very poor, exempt from income tax, contribute proportionally much more than the super-rich.
Also according to the text already approved in Congress, there is a mandatory progressiveness of the ITCMD, the tax on inheritances and donations – progressiveness that is already adopted by the states. But this is not enough, as it continues to have a ceiling of 8%, while rates reach 30% in Germany, 40% in the United States, 45% in France and 50% in Japan. Better tax inheritances, the great Brazilian hereditary meritocracy , is, therefore, another topic for the second stage.
A Congress in Focus survey among deputies and senators, released on October 31 of last year, shows that the chances of approval of the taxation of dividends and large fortunes are low. Yes, tax reform may fall off the agenda because the economic power does not want its wealth and income to be taxed.
The issue is that the government, even with all forms of “convincing” through the release of amendments and granting of positions, will not be able to approve this measure without due popular pressure.
Therefore, if the first part of the tax reform went somewhat unnoticed by ordinary citizens, there is a great chance that the second will enter our daily discussion through social movements, unions, collectives. Which makes sense because, depending on what happens (or doesn’t happen), it’s at stake whether we want a healthy democracy or the rule of the richest.
