Good morning! Today, we talk about Lula’s moves to tax the super-rich. Brazil and Argentina try to facilitate bilateral trade. And an updated look at the tax reform.
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Lula wants to tax the super-rich to raise revenue
The government on Monday took steps toward taxing Brazil’s super-rich:
Funds. President Luiz Inácio Lula da Silva issued a provisional decree taxing so-called “exclusive funds” between 15 and 20 percent, to be levied twice a year. The name comes from the fact that these funds often have a single investor and are only offered to those with more than BRL 10 million (USD 2.1 million) in assets.
- Provisional decrees take effect immediately but expire within 120 days without congressional approval.
Offshore investment. Lula also introduced a bill to tax capital income from offshore financial investments held by citizens who reside in Brazil, including investments made through offshore companies, trusts, and other formally constituted entities located in tax havens.
- This is not the first attempt to tax offshore investments. In April, Lula issued...