Leaders of Brazil’s Productive States Oppose New Tax Law

Leaders from Brazil’s economically pivotal South and Southeast spoke out against the new tax law in the Senate.

They are part of the Cosud, a group that brings together these regions, renowned for being the nation’s financial backbone.

Last Thursday, they said the law is a backward step. It could worsen the country’s tax problems and increase the financial fight between states.

Six of the seven leaders from these areas signed this complaint. They are:

• Tarcísio de Freitas of São Paulo,
• Ratinho Jr. of Paraná,
• Romeu Zema of Minas Gerais,
• Cláudio Castro of Rio de Janeiro,
• Eduardo Leite of Rio Grande do Sul, an
• Jorginho Mello of Santa Catarina.
• Renato Casagrande of Espírito Santo did not sign.

These governors believe the Senate made the law worse. The original version from the Chamber in July was better.

They say the changes turn a good idea into a bad one. This could harm Brazil’s tax system even more.

They also noted the Senate’s changes could unfairly favor some and harm others. This could make the fight over money between states worse.

They worry this could hurt the country’s money and economy. These leaders also spoke about “islands of prosperity.”

They warn that the law could make rich and poor areas more unequal. It could cause more joblessness and hurt poor people the most.

Ratinho Jr., the Cosud President, agrees with this.

Besides their joint statement, these governors planned to ask senators from their areas to vote against the law.

In the end, seven out of 20 senators voted for it. The Cosud insists on working together to avoid unfair treatment of different areas in Brazil. They want to keep the country united.

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