At Last, to the Top Floor?

It didn’t took much time since our last post about the possibility of the government to bring to the discussion a new or higher taxes on the richest segment of the population at a time when the country desperately needs resources to deal with a fiscal deterioration. Among the possibilities were a new rate of income tax, tax on large fortunes and the return of profits and dividend tax (back? Yes, it already existed in the past).

While not a complete surprise, the solution being discussed today between technicians at RFB (Brazilian IRS) is actually a federal estate tax, that’s right, Brazil can finally tax more aggressively its richest class. Recalling that currently exists an inheritance tax, but collected by states, the ITCMD has a maximum rate of 8% only practiced by 3 states, the other mostly tax at 4%.
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The Top Floor

It is not news to anyone that the Brazilian government has taken several measures to improve fiscal environment through tax increases, spending cuts, subsidy reduction and elimination of exemptions made in the past. Some measures were against the ideology of the ruling party, the PT (Workers Party), and suffered huge pressure to be rethought, and in the end really were. These measures mainly affect access of workers to the labor and social security benefits, so it is not surprising that there is enormous resistance.

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