Tuesday, October 17, 2017

Brazil's Inequality

 According to a survey by Oxfam Brasil, richer Brazilians pay proportionally less tax than the poor and middle-income.

 The highest rate of income tax is just 27.5% .

The richest 5% earn the same as the rest of the population put together. 

 President Michel Temer approval rating plunged to 3% in one poll last month. Among under 24-year-olds, Temer’s approval hit zero. He has been charged with corruption, racketeering and obstruction of justice

Temer has retained the support of financial markets who like the austerity measures he has introduced, such as privatising government services, a 20-year cap on expenditure and planned pensions cuts. Markets don’t care much about inequality rates. Public spending has been so slashed to the bone that some basic functions of the state are now at risk.

Many of the political representatives are allied with powerful agribusiness and evangelical Christian lobbies. Temer agreed to spend $1.33bn on projects in the states of lawmakers for votes not to impeach him.  Environmentalists say Temer’s administration is reducing Amazon protection in return for their support.

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