Paulo Guedes wants to end payroll taxation

Economy Minister Paulo Guedes said, this Friday, the 22nd, that he was against the payroll tax of workers. According to his statement, the tax that is currently charged on Brazilian employees is the “cruelest that exists”. For him, the end of these charges would remove many people from informality as millions of jobs would be created. In addition, this change would also bring many benefits to the country, such as the immediate recovery of the Brazilian labor market. To learn more about Guedes' statement, continue reading this article.

Why Guedes defends the end of payroll taxation

The economy minister declared that it was necessary to end taxation on the Brazilian payroll in order to have more job offers. According to Guedes, in Brazil, it is necessary for an employer to fire a person in order to be able to employ another, since one employee costs the price of two. With this in mind, he stated that more than a million jobs would be offered if taxes were removed.

Other benefits that the minister defended with the end of taxation are greater labor productivity, higher wages and a greater contribution to social security. According to Guedes, if more people are hired, more people will be able to pay the INSS.

He showed to be very optimistic with the development of the country's economy. According to the minister, it is advancing at the speed expected by the government and many jobs were created faster than in other years.

In addition, Guedes also said that Brazil is going against the grain of the world. That's because, while other countries are slowing down, the country is accelerating. While the rest of the world is closing down, Brazil is opening up after 40 years.

He even used the famous metaphor of the beached whale to illustrate the country's economic situation. According to him, this whale is moving. He also stated that Brazil's recovery will be gradual and will take place along with a process of reindustrialization of the country.

Where does the payroll tax go?

It is worth remembering that the payroll tax is used to guarantee, among other things, the following rights for the worker:

• retirement due to contribution time, age or disability;
• 13th salary;
• family allowance;
• maternity pay;
• sickness benefit;
• accident allowance;
• vocational rehabilitation;
• death benefit;
• Severance Indemnity Fund (FGTS)

It is important for the worker to be aware of the changes proposed by the government so that he can understand how they will interfere with receiving these rights.

Final considerations

With that in mind, we at Notícia Informe hope to have clarified what were the statements that the Brazilian economy minister made about the end of payroll tax. Continue to follow the next news related to our country's economy by reading the articles on our blog. Also comment what you thought of these changes and if you agree with Paulo Guedes about the recovery of the Brazilian economy.