Good morning! Today, Congress takes center stage as lawmakers seek to extend payroll tax exemptions, and the government fears a Senate defeat on its make-or-break budget bill. Elsewhere, Bolsonaro altered Brazilian labor regulations, streamlining rules but weakening protections.
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Congress to make a push to keep payroll tax exemptions
After the government chose to break with fiscal responsibility rules, Central Bank Chairman Roberto Campos Neto has engaged in a strategy of damage control. In talks with lawmakers, he urged them not to put pressure on the 2022 budget by either increasing expenses or waiving sources of revenue with tax breaks. Mr. Campos Neto’s focus is on two specific issues:
- He fears that Congress will make the Auxílio Brasil program — President Bolsonaro’s new cash-transfer scheme set to pay BRL 400 (USD 73) a month to...