Temer's adjustment spares the wealthiest 1%.
Brazilians who had an annual taxable income above R$ 316 in 2014, or above R$ 26,3 gross per month, were within the top 1% of earners among those who filed income tax returns; by guaranteeing salary increases for public servants who are in the top 1%, interim president Michel Temer and the National Congress are leaving the elite out of the fiscal adjustment; meanwhile, in real life, the average income of a Brazilian in the private sector is R$ 1,1.
247 - Brazilians who had an annual taxable income above R$ 316 in 2014, or above R$ 26,3 gross per month, were within the top 1% of earners among those who filed income tax returns. In total, there were 273 Brazilians in this small relative elite, according to data from the Federal Revenue Service.
By guaranteeing salary increases for public servants who are in the top 1% of earners, interim president Michel Temer and the National Congress are leaving the elite out of the fiscal adjustment.
"If society as a whole will have to share the burden of the fiscal deficit, why guarantee an extra R$ 68 billion in spending until 2018 on the elite of the public service?", asks Fernando Torres in Valor.
"Meanwhile, in real life, the average income of a Brazilian in the private sector is R$ 1,1, the minimum wage is R$ 880, and it is sworn that the only way to balance the country's accounts is to ensure that the INSS (National Social Security Institute) floor remains below that amount" - read more here.