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August 30, 2022
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Ciro says he cannot reduce tax burden without solving fiscal crisis

Ciro says he cannot reduce tax burden without solving fiscal crisis

Candidate for the Presidency of the Republic by the PDT, the former governor of Ceará Ciro Gomes said today (30) that the fiscal situation of Brazilian states is an obstacle to the approval of any tax reform proposal that seeks to reduce the tax burden.Ciro says he cannot reduce tax burden without solving fiscal crisis

“Our country has a fiscal crisis that prevents us from solving any strategic problem [causado] for a distributive conflict”, declared Ciro to hundreds of businessmen who participated, in Brasília, in an event of the National Union of Entities of Commerce and Services (Unecs) with presidential candidates.

“The business community’s fair interest in reducing the tax burden and simplifying the [de cobrança de tributos] collides with the center of the country’s distributive conflict, which is the laceration of the Federative Pact”, said the candidate, noting that 23 of the 27 federative units are on the edge of the Fiscal Responsibility Lawwhich establishes restrictions on budget execution.

“None of them [estados] can give up a penny of their income”, commented Gomes, pointing to possible difficulties for state governments to honor their commitments and invest in essential areas.

“Inside of one [contexto de possível] fiscal collapse, I cannot say that I will reduce the tax burden, the music you wanted to hear. What I can promise is to shift the tax burden on consumption, putting a little hand on the patrimony of the individual”, said the candidate, assuring that, if elected, he will seek to tax large fortunes; unify six taxes into one, the Value Added Tax (VAT) and renegotiate the terms of the federative pact.

“I propose to restructure all this. Reformulate the state debt set in exchange for a volume of investments [públicos] that can say where the money will come from to resume Brazilian development”, promised Ciro Gomes before criticizing the Spending Ceiling – a fiscal mechanism approved in 2016, through a constitutional amendment which basically links the growth of public expenditures to the variation of the inflation of the previous year, for 20 years.

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