Governors say taxation creates second-class citizens

In a note, the Consortium for the Integration of the States of the South and Southeast of Brazil (Cosud), formed by governors from both regions, said that the text of the Tax Reform approved by the Senate creates second-class citizens and “should further worsen the fiscal war between states”.

The governors also said that the reform proposed by the PT government will take the country’s public accounts and economy “to the ICU”.

“The tax reform proposal approved by the Senate worsens the text validated by the Chamber in July and deepens the division. With the changes, what was once an evolution for Brazil, built after much dialogue, became a setback, with the potential to make the Brazilian tax system even worse than the current one. […] Brazil cannot create islands of prosperity, which, consequently, drives away investment, increases inequalities, unemployment and punishes, above all, the poorest”, says an excerpt from the note.

In another section, the governors warn that the approved text creates first and second class Brazilians.

“(It is necessary) to invest in political maturity in search of a consensus so that federative entities are not punished by the corporatism that creates first and second category Brazilians”, says the note.

The document is signed by governors Ratinho Júnior (PSD-PR), Tarcísio de Freitas (Republicanos-SP), Romeu Zema (Novo-MG), Cláudio Castro (PL-RJ), Jorginho Mello (PL-SC) and Eduardo Leite ( PSDB-RS).

Despite agreeing with the content of the note, the governor of Espírito Santo, Renato Casagrande (PSD), preferred not to sign the document.