Economy Minister Paulo Guedes said on Wednesday (14) that the increase of R$ 100 billion foreseen in tax collection with the tax reform will pay for the Bolsa Família.
According to the minister, the program’s expenses will reach R$ 50 billion with the increase in the value of payments and the inclusion of new beneficiaries in Bolsa Família. “We are going to tax the super-rich to finance the tax reduction for wage earners and strengthen Bolsa Família”, explained the minister in an interview with the newspaper Valor Econômico.
Guedes says the changes seek neither to hurt the fiscal responsibility law nor to pierce the spending ceiling. “We know that money doesn’t have a stamp. On the one hand, there are a lot of sources of income, and, on the other, expenses. Brazil is a country that stamps resources. Interestingly, if I took this increase in revenue to pay the R$ 30 billion, they will say they can,” he told the newspaper.
+ See who can be reinstated to Bolsa Família with a decision by the STF
According to the minister, criticism would be raised for taking a “transitional” increase in tax revenue to pay a permanent benefit to Brazilians. “In the stamp country, we will have to take the dividends and say that it is forever,” he explained.
+ Learn about the effectiveness of each vaccine against Covid-19