The lira indicates that Congress will not approve taxation of the rich and billionaires

marcus Mortari, infomoney – House Speaker Arthur Lira (PP-AL) said on Friday (1) that the decision of the government of President Luiz Inacio Lula da Silva (PT) to keep the preliminary result target at zero introduced in the 2024 Annual Budget Bill is “important.” “.

In a committee convened by Expert XP 2023, the parliamentarian said expectations that the government may not achieve the desired outcome are “frightening,” but that the National Congress would be willing to cooperate with the approval of measures that help in this effort.

He noted, however, that there was no willingness on the part of Parliament to approve measures involving tax increases, regardless of the moves of the Planalto Palace in search of building a more solid base of support in the two legislatures.

“It is important that the government maintains a high standard and it is important that this is a target for all of us to achieve. He said that the National Congress had provided unequivocal evidence of its willingness to cooperate, and that it was very alert to any harmful measure to increase taxes that was not compatible with the best course of the economy for the country.

“All necessary actions throughout 2023 and those that may require legislative intervention, we will be ready for a frank and open discussion, so that we have the goal of achieving this goal next year.” [déficit] He continued, “Zero.”

Follow up on recommendations

During the event, Lira said that there is a “good relationship” between the Lula government and the National Congress, and that talks with members of the executive branch are “frequent”, but that they do not represent interference on the part of Parliament in the design of matters referred to Parliament. Deliberations of deputies and senators.

He cited as an example the Temporary Measure for Disciplining Tax Credits Resulting from Support for the Implementation or Expansion of an Economic Enterprise (MPV 1185/2023), which was drawn up under the pretext of regulating a decision in favor of the government made unanimously by the President of the Court of Justice (STJ).

“Of course, we have no obligation whatsoever to merit, as it turned out. In view of the problems that had been present in the treatment of the interim measure which dealt with the taxation of offshore, and now of the inland territories, of exclusive funds, he noted.

The three measures are part of a package of measures planned by the government to deliver on its promise to clear the primary deficit in 2024 – the economic team estimates the need for an additional collection of about R$168.5 billion.

But Arthur Lyra disagreed with the government’s anti-distortion rhetoric, which political allies often use to divide the population between income groups. He said, “We don’t need the rhetoric of the rich against the poor in this country, everyone needs to be together, to stand for united positions, for the right actions, for the right size.”

He advocated caution in measures that could represent very big game changes in terms of taxation, as in the cases of “offshore” and exclusive funds (also called closed-end or “inside” funds).

“In the case of offshore profitability and in the interim measure we have to provide legal certainty, and we cannot contribute to the erosion of the rule.” [tributária]. And we know that money has no home. Today he is here, and tomorrow he may be in Portugal, Spain, England, Uruguay. He pointed out that we need self-restraint to determine the executive and legislative alternatives to balance the accounts and reach the goal that we want to achieve.

One of the warnings directed by the lira relates to the rates set by the government’s economic team in writing articles sent to the National Congress. He suggested applying a rate of 6% to stocks of financial investments subject to rule changes. “I think the government will gather more there, and this will provide space for negotiation between all sectors with the National Congress,” he said.

“We need predictability and, therefore, legal certainty, so as not to destabilize a country that is at the forefront of all countries like us in resuming growth after a very difficult pandemic,” he added.

On the other hand, Lira defended the need to discuss reducing public spending, highlighting administrative reform, which, according to him, is “ready to go to the plenary session.” “Of course, we have to start discussing public spending. Of course we have to start discussing expenses. If we can’t increase our income at home, we’ll first sit and listen to where we’re going to cut.”

In his defense of administrative reform, Lira asserted that there is no provision in the proposed amendment to the pending constitution in the House of Representatives that affects the acquired rights of public officials during the exercise of their activities. But he said the effects, while limited to newcomers to the civil service, would be important for the country’s future.

“Inasmuch as I or this or that think differently ideologically, we have to think that, by containing expenditures or with foreseeing a change in the trajectory and expenditures of the public service, with predictability, bringing about a change we give a very big signal to those who are born They create jobs, generate income, and support this country day and night.”

But for the Speaker, this agenda will not advance in Parliament without the explicit support of the Planalto Palace. He also said that he had spoken in recent days with Finance Minister Fernando Haddad (PT) about proposals being discussed in the legislature that could help efforts to balance public accounts.

“We have alternatives to legislative issues that are being addressed and can help achieve social justice and correct distortions and collection problems for the government other than this discussion about increasing the collection of tax values. It will be difficult for the government, with or without grounds, to impose this in the National Conference. He concluded: “There is no doubt that the tax increase is not.”