The government’s terrible idea to tax financial operations in Brazil

I don’t like talking about the same subject over and over again. That’s why I chose not to use this piece to criticize President Jair Bolsonaro, not for lack of reasons to do so. I unsuccessfully drafted an analysis of his degrading relationship with Justice Minister Sergio Moro, but it has just become too easy—and too boring—to criticize Mr. Bolsonaro.

In the meantime, I had the pleasure to watch a panel on “conditions for regaining growth,” at BTG Macro Day—an event with debates on macroeconomic matters promoted by investment bank BTG Pactual. One of the participants was Marcos Lisboa—among the best Brazilian economists of our time—who had the guts to lash out at one of the government’s ideas to reform the tax system, which involves a tax on all financial operations. This would represent a huge step backwards, and it is frightening that Economy Minister Paulo Guedes...