The development bill

¹Jandira Feghali

Take a look at the covers of national magazines and the headlines of newspapers from the last few days. Not a single outcry, much less a spark of speculation about the 20 billion reais evaded in tax havens in Switzerland through Brazilian bank accounts at HSBC. Of the more than 8 accounts revealed in Hervé Falciani's enormous list, not a peep from the mainstream media about one of the biggest tax evasion crimes of our time.

The classic example of this biting silence from the press is that the only professional in possession of the list chose to reveal only the data of some people. He left out so many others, such as FHC's former advisor during the privatization era, Saul Dutra Sabba, responsible for the program of selling state-owned companies. This absurdity, publicized with great zeal by the progressive blogosphere, shows how important it is to foster a free press and debate the importance of access to information.

Regarding tax evasion, the Federal Government must combat it with an iron fist. Today, the excessive evasion of foreign currency is fueled by financial capital. To make matters worse, they are all relieved by a subservient press, in addition to a lax tax model for those with greater wealth. It is worth pointing out that these billions of reais not taxed in Brazil and resting peacefully in Switzerland could boost the Union's revenue, which is currently a priority for maintaining public accounts. If the goal is to achieve fiscal balance to guarantee social policies, then let there be investigation, punishment, and collection of what is owed to the public coffers. Adjustments, when necessary, are made by combating tax evasion and conferring greater progressivity to our tax model, and not at the expense of fundamental social policies to combat inequalities.

Unfortunately, our tax system is still quite regressive and therefore unfair to those who live off the income from their work and lenient towards those who evade taxes and speculate. Since the return to democracy, those who have less are charged more, while the minority who have a lot are charged nothing. The rich don't pay property tax on their luxurious yachts and helicopters, but the middle class is drowning in taxes of all kinds to maintain a basic car.

The debate on progressivity began during Lula's government when income tax brackets were expanded. Now, Brazil has the opportunity to guarantee fair taxation with the Contribution on Large Fortunes, through Complementary Law Project 10/2015, authored by me. The proposal would allow for an extraordinary contribution to public health, with expected revenue of almost R$ 20 billion annually. The majority, almost half, would come from fewer than a thousand Brazilians with assets exceeding R$ 150 million.

This is the direction we must take right now. Combating tax evasion, money laundering, and corruption, and proposing progressive taxation are challenges that must be overcome. Economic and social development, and a less unequal society, urgently require mechanisms like this. It is time for Brazil to put an end to practices that only benefit a few, at the expense of the majority of the population. Our nation needs to open its eyes and present the bill for development and fiscal adjustments to those who are entitled to it: the millionaire tax evaders.

 

¹Physician, federal deputy (RJ) and leader of the PCdoB in the Chamber of Deputies.