Lula's tax breaks boost middle-class support |
| Brazilian President Luiz Inacio Lula da Silva's new income tax breaks, effective from January, aim to reduce the tax burden on middle-class Brazilians. The policy is expected to remove around 11.3m taxpayers from the rolls, so enhancing Lula's appeal ahead of October elections. The tax exemption applies to monthly salaries up to 5,000 reais ($960). Vitoria Santos, an advertising professional, observed: "It's a meaningful amount that really makes a difference." However, economists such as Fabio Kanczuk warn that this approach may not address Brazil's long-term economic challenges. "It's bad economic policy, but it wins votes," said Kanczuk, a former central bank director and now ​head of macroeconomics at Asa Investments. |
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