Bolsonaro announces a tax on dividends to finance social spending

Bolsonaro announces a tax on dividends to finance social spending

The latest opinion polls show that Bolsonaro is cutting into Lula’s lead since last week, after the president obtained a stronger-than-expected result in the first round of voting on Sunday. Both will face each other second round on Sunday 30.

Bolsonaro told lawmakers in brasilia that he had agreed with the president of the Chamber of Deputies tax dividends for Brazilians with income over 400,000 reais ($77,000) in order to extend a social assistance program that expires in December.

Both the ultraconservative and Lula da Silva have promised to continue monthly payments of 600 reais to the poorest Brazilians next year, but neither has detailed how he would pay it. Both candidates want change Brazil’s budget rules, without giving details.

Bolsonaro added that the state bank Federal Economic Bank He would forfeit up to 90% of what some four million people and 400,000 companies owe him. Lula da Silva included that proposal in her presidential platform after she gained visibility.

Lula gathers more support

On the other hand, Lula received written endorsement from several economists who helped stabilize Brazil’s economy in the 1990s, when the country was ruled by the Brazilian Social Democracy Party (PSDB)of Fernando Henrique Cardosotraditional rival of Lula’s Workers’ Party.

Arminio Fraga, Edmar Bacha, Pedro Malan and Persio Arida wrote that they voted for Lula and that they expected a “responsible management of the economy” by the former president.

A poll published by PoderData on Thursday showed Lula da Silva with 48% of voter support, compared to 44% for Jair Bolsonaro. Last week, the same pollster showed the leftist winning a mock second-round vote by 51% to 39% of the total vote.

PoderData was one of several polling companies criticized for underestimating support for Bolsonaro in the first round of voting, which Lula won by a difference of 5 percentage points, less than expected.

Source: Ambito

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