Brazil Politics: Government Eyes Dividends to Offset Tax Cuts

President Luiz Inacio Lula da Silva and Finance Minister Fernando Haddad will present a bill Tuesday to exempt those earning as much as 5,000 reais ($877) from income taxes, following through on a campaign promise from the leftist leader. Haddad said the measure would cost public coffers 27 billion reais ($4.7 billion).

To finance the benefit, the government will set the so-called minimum tax on those with a monthly income above 50,000 reais per month, says O Estado de S. Paulo. The rate would gradually rise from zero to 10% — for 100,000 reais or more per month. Among the ...