Earlier this month, six bills were filed with the Federal Chamber to make adjustments in taxation, tax high incomes and large assets, linking part of the collection to public programs to assist victims of covid-19. The projects were drawn up by members of the Tributar os Super-Ricos campaign, formed by more than 70 entities from all over the country, which expects to raise around R$ 300 billion taxing only the richest 0.3% of the population. The subject was the subject of the live this Thursday (9).
“We are associated with this great struggle to generate sources of funding. We will need society’s responsibility in the face of the greatest calamity in the history of Brazil. We had been experiencing depression in social policies before”, highlighted Lúcia Souto, a health care doctor and president of the National Association in Support and Defense of the Rights of Victims of Covid-19 – Life and Justice.
::National wealth decreased by 425 billion dollars in 2020, while the number of billionaires increased::
The pandemic left 600,000 dead by covid-19, 130,000 orphans, 20 million Brazilians contaminated by the coronavirus, many with physical and mental sequelae. “The consequences are of a magnitude that is still difficult to imagine. It is necessary to give sustainability to victims and family members with public policies that ensure solidarity, care and restore the well-being of the Brazilian population”, said the representative of the entity that brings together family members of Covid-19 victims.
Survivors require a set of care such as physiotherapy, psychotherapy and various medications indefinitely. Many will not be able to return to work, with great demand for social security. Lúcia Souto observes that in many patients there are impacts on the cardiovascular, respiratory, renal, neurological, dermatological, gastrointestinal, ophthalmological and endocrine systems.
::Projects filed to tax the super-rich finance policies for covid-19 victims::
“The role of the National Congress is to advance strategic legislation, which is essential to face the greatest health crisis of the century. We criticize this large-scale human genocide generated by the president and his ministries, but we offer solutions and propose a future”, said federal deputy Pedro Uczai (PT/SC), who filed the bills with the support of 60 parliamentarians from four parties, and from Life and Justice Association.
At the same time that the pandemic deepened unemployment, bringing food insecurity to more than 116 million people, it increased the number of billionaires, a group benefiting from tax exemptions and other favors that do not reach the poorest. Fiscal injustice is both a cause and a consequence of Brazil’s profound inequality, where 1% own 50% of all wealth and 1% keep 25% of all income.
For the fiscal auditor and vice president of the Fiscal Justice Institute (IJF), one of the entities that coordinates the Tributar os Super-Ricos campaign, the projects constitute a small set of modifications, but with an enormous capacity and potential to reduce inequalities. Dão Real Pereira dos Santos explains that the first measure is the reform of the Income Tax with progressive criteria, increasing the exemption limit for lower incomes and increasing the rates for high incomes.
Revoking the exemption on profits and dividends distributed and the deductibility of interest from equity (measures in force since 1995), are measures that increase taxation to only 0.3% of the population and allow the collection of R$ 160 billion a year, explains the controller. Relieving the Simples Nacional companies, covering 70% of the companies, is another proposal already in progress.
Implement the Great Fortunes Tax, the only tax provided for in the 1988 Constitution, which has not yet been implemented, instituting progressive rates from 0.5% to 1.5% only for the amount above R$ 10 million (covers 60 thousand people, representing only 0.028% of the population), raising around R$ 40 billion a year.
Strengthen the financing of Social Security, Health, Assistance and Social Security, sectors most affected by the pandemic and most in demand from the public sector, with the temporary increase, for five years, of the rate of the Social Contribution on Net Income of banks and the mineral sector and the creation of the Social Contribution on High Income for individuals, with only the installments that exceed a monthly income of R$ 65,000 per month.
More resources for states and municipalities and a tax on pesticides
Dão Real also detailed that the States and Municipalities should benefit from the proposal for a new distribution of revenue presented in the projects. In addition to the already existing participation funds, another 10% of the Income Tax and 20% of the IGF would be shared, increasing the revenue of the States by R$83 billion and that of the Municipalities by R$54 billion.
From the alignment of proposals to tax the super-rich with the banners defended by Associação Vida e Justiça, the proposal for the creation of the Contribution for Intervention in the Economic Domain (Cide) on the import and production of pesticides was incorporated into the projects. .
In addition to the bills, the full implementation of the measures will require the approval of two amendments to the Constitution, whose signatures for the proposals are already being collected.
Senate needs to change IR proposal
Both the member of the IJF and the deputy Uczai reinforced in their speeches that the changes in the Income Tax approved in the Chamber, pending analysis in the Senate, are insufficient to face the social, economic and health problems.
For the tax auditor, the federal government project that amends Income Tax rules (PL 2337/21) tends to reduce the participation of the IR in the total collection, estimated loss of R$ 30 billion in the first year and R$ 50 billion in the second, reducing the capacity of the State, compromising the revenues of the States and Municipalities as well, making it difficult to face the effects of the crisis.
“With this project, the government is facing other projects that have been debated since 2018, with the proposal for a solidarity tax reform and the projects of the Tributar os Super-Ricos campaign. It appropriates the taxation agenda of profits and dividends and further depletes the capacity of income taxation to promote the progressiveness of the tax system and the reduction of inequalities”, analyzes Dão Real.
Contrary to what is happening around the world, the report approved by the Chamber, expanded the tax relief on companies’ profits and financial investments, in addition to removing from the original text all the anti-eesis measures, which could mean an advance in efficiency and equality in the application of tax legislation, explains the auditor.
Civilizing social pact
“We will have to make a big social pact and put the citizen on the budget. This is the only way to combat poverty”, calls journalist Luís Nassif, warning that the good mocismism of the center right is “crocodile tears”. Nassif points out that society needs to unite to fight the common enemy that is big capital insensitive to poverty and inequality, a sector that influenced the “free delivery of the country to the most criminal of the military, which is Jair Bolsonaro”.
The journalist analyzed the country’s political and economic situation and warned of the enormous challenges of a new progressive government that will need to free itself from numerous fiscal ties to put the country back on a trajectory of growth with distribution and that this will only be possible with the effective inclusion of population in all its diversity and in the radicalization of the welfare state.
:: Understand how taxing super-rich bankers can reduce inequality in Brazil ::
For the executive director of the Life and Justice movement, Renato Simões, the mobilization of society needs to be continuous. “This is the path sought around the world. The fiscal adjustment did not withstand the pandemic. New sources of revenue are needed. It is the State that has the attributions and capacity to do this. Tax injustice cannot continue. These challenges are all the more urgent because social demands are increasing.”
He informed that in addition to the articulations with social movements in all states, in the next two months there will be debates through lives every Thursday, at 7 pm, to publicize the importance of approving these projects.
The movement already has sections constituted in RS, SC, SP, DF, GO, MT and MG. In the process of organization, until October are the AC, AM, MA, RJ, PR, SE and MA.
:: Click here to receive news from Brazil de Fato RS on your Whatsapp ::
BE A FRIEND OF BRAZIL DE FACT RS
Have you noticed that Brasil de Fato RS makes all the news available for free? We do not charge any kind of subscription from our readers, as we understand that the democratization of the means of communication is fundamental for a fairer society.
We need your support to move forward with the brainstorming, click here and contribute.
Source: BdF Rio Grande do Sul
Edition: Katia Marko