"Is there a greater injustice than a millionaire paying 1/4 of the tax that a teacher pays?", asks the secretary.

247 - The Secretary of Economic Reforms at the Ministry of Finance, Marcos Barbosa Pinto, stated in an interview with Folha de S. Paulo that the proposal to create a minimum tax for millionaires in Brazil, advocated by the government, has a significant chance of being approved. 

According to him, the measure has received great support from the population and Congress is sensitive to this opinion, especially in the context of parliamentary reelection.

"Congress is very sensitive to public opinion. All parliamentarians have to run for re-election. And the population feels this injustice of a nurse paying more income tax than a millionaire," stated Barbosa Pinto.

The government points to inequality in income taxation, such as in the case of salaried workers who pay higher rates than the super-rich. According to data presented by the secretary, while a worker can pay up to 27,5% in income tax, a small group of 141 people, who are at the top of the country's financial pyramid, pay an average of only 2,5%.

"Is there a greater injustice than this? A millionaire paying a quarter of the tax that a teacher pays?", the secretary asks.

To guarantee the collection of the new tax, the government proposes withholding 10% on dividends paid by companies. 

According to Marcos Barbosa, withholding tax is fundamental to avoid default and to guarantee that the projected revenue comes into effect in 2026. "If there is no withholding, there is no way to approve the project, as it would lack sufficient revenue," he explained.

According to the secretary, the proposed tax rate in Brazil is lower than that of developed countries, such as the United States, where the wealthiest 1% pays, on average, 25% in taxes on their income. "We are talking about the great engine of global capitalism. Here in Brazil, that same group pays only 2,5%," he compared.

Regarding the impact of the measure on the Stock Exchange, Marco Barbosa rules out negative effects, since the main taxation for investors comes from capital gains, which will not be altered. "If the company has already paid 34% in tax, there will be a refund of the minimum tax, ensuring that there is no double taxation," he added.