Last week I read an interview with Carlos Bresser, mentor of the Bresser plan and conductor of the administrative reform of the FHC government. The article is super interesting and you can check it out here. Bresser is a fine example of a protectionist, and a critic of free trade [which I, as a liberal, defend]. However, we have a very rich text with ways to deal with the crisis.
I have an economist in my family, to whom I always turn with much admiration and thirst for knowledge: my father. Talking back and forth, it became clear to me that this is actually not a new subject (injecting money), but a very old one, but no one has yet found the right way to do it, since there is the risk, for example, that all this credit generated will be retained in the hands of large corporations and not go directly to those who need it most.
Then I found out that my old man proposed exactly the opposite: "to 'lend' money to commerce, with Selic costs, a 12-month grace period. A way to put money into companies, with the obligation to maintain jobs and linked to the drop in revenue of each company.
Then came the idea to disclose 5 actions that can help the government to get it right in this crisis, and who knows, reduce the economic impact we are feeling.
1 - Investing in the future.
Deduction of 50% of the additional personnel expenses, based on Dec 2017, from the
tax calculation basis of the companies, with a maximum duration of 60 months and
Reduction of 10% in the benefit, to zero in the fifth year.
Objective: to reduce unemployment and stimulate the economy;
The company has an incentive to hire and the government gains with the increase of the
The company has an incentive to hire and the government wins with the increase of the IRRPF tax base and the 50% increase in INSS contributions in the first year,
not to mention the growth of the economy that increases the entire chain of consumption and, consequently, the
consequently, the collection of taxes and increase in employment and income.
The new companies automatically enter this exemption, encouraging the creation of jobs, but
However, they cannot be linked to other companies, when the consolidated base will be
will be considered the consolidated base, including when they are acquired by others;
2- To care for those who need it most:
Create a table for social security deductions, along the lines of the IRRF table, where the
unequal should be treated unequally, the principle of isonomy. With this
This corrects part of the social injustice, where a small elite accounts for most of the benefits received from Social Security;
3- Working for equality
Revision of all types of benefits in all three branches of government, with popular consultation - PRINCIPLE OF AFFECT - that is, everything that directly or indirectly benefits a public agent will have to be submitted to a popular referendum, which will only be approved if approved by more than 2/3 of the population; anything less will be automatically rejected;
4- Cut the excess:
Drastic reduction of public agents at all levels, with evaluation of the need of each organ and amount of servers; Prohibit the so-called cabinet allowance in all powers and levels of government.
5- Reduce the superfluous
Prohibition of any kind of governmental propaganda, including the attribution of names
Prohibition of any kind of government advertising, including the attribution of names other than generic ones to identify government programs. When strictly necessary
necessary, the propaganda must be audited before its dissemination,
The agency or company responsible for the audit and the amounts involved in its creation and
involved in its creation and dissemination, along with the advertisement;
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Walter Luiz da Costa has a master's degree in controllership and public accounting, MBA in finance, post-graduate in financial administration and specialization in economics, education based on FUCAPE, USP, Wharton School and FECAPE. He has over 30 years of experience, having worked as Asset Superintendent in the private sector, Controller Manager of the Gas Company of ES, Undersecretary of logistics, transportation and foreign trade, working as a public servant of the state of Espirito Santo since 2010.
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