More Tax on the Back of Those Who Work to Fund a State That Only Knows How to Collect and Give
In recent years, Brazil has faced increasing tax pressure, with the government seeking alternatives to increase revenue at any cost.
The recent increase in the IOF (Financial Transactions Tax) promoted by the government of Luiz Inácio Lula da Silva is yet another measure that places the tax burden on the backs of those who actually work and contribute to the country's economy.
The expected collection is R$ 20.5 billion in 2025 and R$ 41 billion in 2026, but the reality is that, since Lula's inauguration, federal revenue has increased R$ 234 billion above inflation and yet, it was not enough.
The question that remains is: where is so much money going? And, more importantly, how long will the working class continue to fund a State that only knows how to collect and toast without generating concrete results for the population?
The Increase in the IOF and the Search for More Collection
The IOF was raised on the grounds that the government needs to increase revenue to sustain its fiscal and social policies.
Although the IOF is a tax with a relatively discreet charge on financial transactions, it directly affects those who rely on credit to run their lives, whether to finance their own home, a car, or a small business.
The Lula government has increased the tax burden in various ways since its inauguration, and the increase in the IOF is just another part of that strategy. As a result, the government expects that, in 2025, the increase in revenue will be R$ 20.5 billion, and in 2026, R$ 41 billion.
However, what few say is that, since Lula took office, the government has raised R$ 234 billion more than inflation, without this having been reversed in significant improvements for the population.
The Effect on the Personal Economy
The working class, which already pays a high tax burden, is now faced with more taxes, which represents a higher cost for those who depend on banking or credit services. The increase in the IOF directly affects:
- Personal loans and financing: The cost of loans and credit becomes even higher, hurting those who need financing for small and medium-sized needs.
- Access to credit: People who are already struggling to balance their finances end up seeing the interest rate even higher, which can make credit even more unaffordable.
This situation places an even greater burden on those who are already on edge, working hard to maintain their income and provide for the basic needs of their families. The tax increase seems more like an isolated measure, without considering real market conditions and the needs of the population.
Raising Isn't Enough, and What Happens to the Money?
Federal revenue has grown significantly since Lula took office, but fiscal problems continue, and the government does not seem to know how to efficiently manage the funds collected.
Inflation and the cost of living are constantly increasing, and the feeling is that the money raised is not being effectively invested to improve the lives of Brazilians.
- Where is the money? : With so many billions being raised, why is the infrastructure still precarious? Why are health, education, and public safety still in lower than expected conditions?
- Management failure: The public administration seems focused on raising but not on applying resources efficiently. The increase in taxes only increases pressure on those who are already paying most of the tax burden, without seeing concrete results.
The Impact of More Taxes on Workers
It's important to reflect on who is actually paying for this tax increase. The workers are, in fact, the main ones affected by this fiscal policy.
The increase in the tax burden falls on those who have no way of evading collection, such as salaries and income from individuals, while large corporations, which have access to legal devices, are often able to avoid heavy taxation.
Working Class in Crisis
The reality is that while the government increases taxes, salaries are not keeping up with the same pace. The increase in inflation and the high tax burden erode the population's purchasing power, especially for those who depend on a fixed wage to survive.
At the same time, the State continues to collect and toast without providing tangible solutions to the population's problems.
The Solution: Efficient Use of Public Resources
It is evident that the growing revenue has not been sufficient to solve Brazil's problems. The true solution involves efficiency in public management, where the resources collected are well invested in areas that really matter to society, such as education, health, public safety and infrastructure.
While the government is limited to raising taxes, the lack of effective public planning and management is a huge obstacle to the country's sustainable growth.
Conclusion: The Workers' Tax Burden
More taxes on the backs of those who work is what many Brazilians are facing with the recent tax measures of the Lula government. The increase in the IOF is just another reflection of an excessive collection policy, while the State fails to deliver concrete results for the population.
The working class, which already bears a significant burden, ends up footing the bill of a government that only knows how to collect and toast, without focusing on the efficient application of resources.
Investing in Brazil or seeking alternatives such as investments abroad can be a viable solution for those who wish to preserve their assets and increase profitability, especially in the face of an economic scenario where the tax burden continues to grow, with no satisfactory return to society.
