Good morning! Today, Brazil’s income tax bar is raised higher. AI to write school lesson plans? The Senate decides on rules for streaming platforms.
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Congress raises income tax threshold
Congress voted on legislation that essentially raises the income tax threshold in Brazil to the equivalent of twice the minimum wage, currently BRL 2,824 per month (USD 540). The votes in both chambers confirmed the contents of a presidential provisional decree.
👉 Why it matters. According to 2022 data, two-thirds of Brazilian workers earn up to twice the minimum wage.
State of play. The income tax threshold has not been adjusted for inflation since 2015, resulting in millions of low-income Brazilians having to pay income tax.
Be smart. Raising the income tax threshold is one of President Luiz Inácio Lula da Silva’s strategies to keep the economy heated. The government ultimately wants to raise the income tax threshold to BRL 5,000 (which would exempt 90 percent of Brazilian workers from paying tax).
Pyramid. Brazil’s income pyramid is oddly shaped. To be among...