Government only increases taxes on those who produce and calls it tax justice
Brazil flirts with recklessness by combining fiscal discontrol with a necessary high interest rate policy to control inflation. Read on Gazeta do Povo.
TL;DR
- Brazil is combining fiscal discontrol with high interest rates to combat inflation, risking a public debt explosion.
- The government prioritizes revenue increases over spending cuts, taxing savers and producers more.
- This strategy aims to fund political projects, with alleged complicity from Congress and the Judiciary.
- There's a disregard for what worked in other countries and the impact on productivity and competitiveness.
- A proposal to reduce working hours without a pay cut is cited as an example of negative impact on productivity.