Good morning! Today, we talk about the massive tax privileges enjoyed by Brazil’s rich. How fires have devastated Brazilian biomes. And a push for even more Central Bank independence.
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There is such a thing as a free lunch (for Brazil’s rich)
A week after Brazil’s Federal Accounts Court warned the government about the country’s excessive amount of tax waivers — which now amount to almost 5 percent of the GDP — a union representing tax auditors gave new contours to the problem.
- Unafisco launched its latest “Tax privilege-o-meter,” according to which Brazil is set to lose BRL 789.6 billion (USD 145.65 billion) to undeserved tax privileges this year alone.
- The union classified a tax waiver as a privilege when there is no proof that it effectively promotes the development of the Brazilian economy.
Loopholes. A 2021 constitutional amendment capped the amount of tax waivers at 2 percent of GDP, but the main such programs were excluded from the calculation. According to Unafisco, these are mostly enjoyed by rich taxpayers —...