According to Reginaldo Lopes, the new arrangement allows the government to move forward with what he calls continuity of tax reform, expanding the taxation of richer people
The entry of Centrão into the president’s government Luiz Inácio Lula da Silva (PT) stabilizes the relationship between the Executive and the Legislature. In the assessment of the deputy leader of the Government, federal deputy Reginaldo Lopes (PT-MG), this is the beginning of a dialogue that will bring more comfort in the approval of government agendas.
“[A entrada do PP e do Republicanos] consolidates dialogue with part of these parties’ benches and gives stability to the government“, he said in an interview with Power360.
Watch (36m21s):
Reginaldo is 50 years old and is in his 6th term as federal deputy. He is deputy leader of the PT bench in the Chamber of Deputies and coordinated the Tax Reform Working Group in Congress. He is one of the party’s most influential politicians. He was the author of the Access to Information Law, which brought more transparency to public management.
The main root of the government’s disagreements with Centrão in the 1st semester, according to Lopes, is the difference in power that the Legislature has today compared to previous PT governments. “Today, Congress has greater independence from the Executive Branch, because the Bolsonaro government outsourced management and the budget to Parliament“, said Lopes.
Still, he did not say it was something bad, as Minister Fernando Haddad (Finance) said. He only advocated that adjustments be made to the relationship.
Lopes stated that taxation on income and assets will make it possible to eliminate the deficit next year. Asked about the movement in the National Congress to review the target, he considered it a bad decision that could impact the market’s expectation anchors.
Here are other highlights from Reginaldo Lopes’ interview:
- consumption tax – “All studies take into account that our consumption reform managed to bring progress: those who earn more will pay more; those who earn less will pay less“;
- cashback – “It was a step forward in constitutionalizing the reform of this tax return mechanism for the poorest.“;
- growth by 2.5% – “I am convinced that we will end the Lula government with an average growth rate above 2.5%, which is very good for a country that is rebuilding its image and stability, both internally and externally.“;
- new PAC – “It’s a hit. Much more dynamic. Corrects past distortions because it allows and enables the private sector to invest“.
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