{"id":95558,"date":"2025-08-27T16:09:30","date_gmt":"2025-08-27T19:09:30","guid":{"rendered":"https:\/\/murray.adv.br\/?p=95558"},"modified":"2025-08-27T16:09:30","modified_gmt":"2025-08-27T19:09:30","slug":"chief-of-staff-warns-against-dropping-high-income-taxation-from-reform","status":"publish","type":"post","link":"https:\/\/murray.adv.br\/en\/chief-of-staff-warns-against-dropping-high-income-taxation-from-reform\/","title":{"rendered":"Chief of Staff warns against dropping high-income taxation from reform"},"content":{"rendered":"<section class=\"content--header\">\n<div class=\"row content-head featured \">\n<div class=\"title\">\n<h6 class=\"content-head__title\" style=\"text-align: center\"><em>Rui Costa says removal of compensatory measures could impact funding for schools and hospitals<\/em><\/h6>\n<\/div>\n<\/div>\n<div class=\"content__signa-share\">\n<div class=\"content__signature\">\n<div class=\"content-publication-data\">\n<div class=\"content-publication-data__text\">\n<div class=\"content-publication-data__from\"><\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p class=\"content-publication-data__updated\">08\/27\/2025\u00a0<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<div id=\"mc-article-body\" class=\"mc-article-body \">\n<article>\n<div class=\"no-paywall\">\n<div class=\"mc-column content-text active-extra-styles active-capital-letter\" data-block-type=\"unstyled\" data-block-weight=\"47\" data-block-id=\"2\">\n<p class=\" content-text__container theme-color-primary-first-letter\" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">The president&#8217;s Chief of Staff, Rui Costa, warned on Wednesday (27) that removing compensatory measures from the government\u2019s income tax reform proposal could undermine public services such as schools and hospitals. Speaking about congressional negotiations, he argued that sometimes \u201cirrational strategies to damage the federal administration prevail.\u201d<\/p>\n<\/div>\n<div class=\"wall protected-content\">\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"61\" data-block-id=\"3\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Mr. Costa\u2019s remarks refer to behind-the-scenes maneuvering by opposition lawmakers to strip out provisions that would help offset revenue losses from expanding the income tax exemption to those earning up to R$5,000 per month. The government\u2019s bill includes a 10% tax on high-income earners. Without that provision, new measures would be needed to cover the fiscal cost of the expanded exemption.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"56\" data-block-id=\"4\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">While Mr. Costa said it would be difficult for Congress to reject the overall project, he admitted compensatory measures could be removed. \u201cThat would create difficulties in keeping schools and hospitals running, because any government in the world needs resources to provide public services,\u201d he said during a live interview on the program Bom Dia, Ministro.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"35\" data-block-id=\"5\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">The Lula administration is pushing for a vote on the reform this week, fearing that former president Jair Bolsonaro\u2019s trial at the Supreme Court\u2014scheduled to begin September 2\u2014could heighten political tensions and delay the agenda.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"59\" data-block-id=\"6\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">As reported by Valor, lawmakers see the release and payment of congressional earmarks as key to smoothing approval in the lower house, though resistance remains. A faction of Brazil Union, for example, is lobbying to strike the 10% high-income tax. Meanwhile, Mr. Bolsonaro\u2019s Liberal Party (PL) is pressing for the exemption threshold to be raised further, to R$10,000.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"45\" data-block-id=\"7\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Mr. Costa also addressed President Luiz In\u00e1cio Lula da Silva\u2019s recent appeal for ministerial loyalty, delivered Tuesday (26) during a cabinet meeting at the Planalto Palace. Mr. Lula told ministers they may attend partisan events but must consistently defend the government, especially in opposition forums.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"42\" data-block-id=\"8\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Defending Mr. Lula\u2019s stance, Mr. Costa argued that members of the governing bloc need discipline: \u201cOtherwise you hold ministries, but end up voting against the government,\u201d he said. \u201cIf you\u2019re in the government, you must defend not Lula personally, but the administration.\u201d<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"28\" data-block-id=\"9\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">According to Mr. Costa, ministers should respond directly to criticism. \u201cIf a person doesn\u2019t defend their own work, it becomes hard for the public to understand,\u201d he said.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"58\" data-block-id=\"10\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Sources told Valor that Mr. Lula avoided singling out ministers or parties during Tuesday\u2019s meeting, but he cited a recent example: the federation event formalizing ties between Brazil Union and the Progressives Party (PP). During the event, PP leader Ciro Nogueira criticized the government, yet, Mr. Lula complained, \u201cnot one minister raised a hand to defend\u201d the administration.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"28\" data-block-id=\"12\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">The episode highlights mounting friction between the government and its coalition partners. Together, Brazil Union and the PP control four ministries but have increasingly clashed with the president.<\/p>\n<\/div>\n<div data-track-category=\"multicontent\" data-track-action=\"ultimo chunk conteudo\" data-track-noninteraction=\"false\" data-track-scroll=\"view\">\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"46\" data-block-id=\"13\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Adding to the tension, Mr. Lula also mentioned Brazil Union president Antonio Rueda, reportedly saying he disliked Mr. Rueda and that the feeling was mutual. The remarks followed weeks of unease after Mr. Rueda publicly criticized the government\u2019s handling of tariff negotiations with the United States.<\/p>\n<p data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">*By\u00a0Sofia Aguiar, Valor\u00a0\u2014 Bras\u00edlia<\/p>\n<p data-track-category=\"Link no Texto\" data-track-links=\"\" data-mrf-recirculation=\"Article links\">Source: Valor international<\/p>\n<p>https:\/\/valorinternational.globo.com<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Rui Costa says removal of compensatory measures could impact funding for schools and hospitals &nbsp; &nbsp; &nbsp; 08\/27\/2025\u00a0 The president&#8217;s Chief of Staff, Rui Costa, warned on Wednesday (27) that removing compensatory measures from the government\u2019s income tax reform proposal could undermine public services such as schools and hospitals. Speaking about congressional negotiations, he argued [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8106],"tags":[26368],"class_list":["post-95558","post","type-post","status-publish","format-standard","hentry","category-murray-news","tag-high-income-taxation-from-reform"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Chief of Staff warns against dropping high-income taxation from reform - Murray Advogados<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/murray.adv.br\/en\/chief-of-staff-warns-against-dropping-high-income-taxation-from-reform\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chief of Staff warns against dropping high-income taxation from reform - Murray Advogados\" \/>\n<meta property=\"og:description\" content=\"Rui Costa says removal of compensatory measures could impact funding for schools and hospitals &nbsp; &nbsp; &nbsp; 08\/27\/2025\u00a0 The president&#8217;s Chief of Staff, Rui Costa, warned on Wednesday (27) that removing compensatory measures from the government\u2019s income tax reform proposal could undermine public services such as schools and hospitals. 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