By Marcela Ayres
BRASILIA, Sept 4 (Reuters) - Brazil's wealthiest captured a record share of national income under President Luiz Inacio Lula da Silva, tax-return data show, offering a striking counterpoint to the leftist leader's effort to convince voters that gains have been widely shared under his administration as he seeks reelection in October.
Lula has pointed to falling inequality, as measured by a record-low Gini coefficient in 2024, and rising employment as evidence that his administration prioritizes poorer Brazilians.
But tax-return data paint a more complex picture: high interest rates, partly a consequence of increased government spending, fueled a boom in financial income that disproportionately benefited the wealthy, even as stronger labor markets, wage gains, and social programs improved conditions at the bottom of the income distribution.
"If government benefits, on the one hand, are well targeted, they can have a positive social impact," said Otaviano Canuto, a former World Bank vice president.
#income #record
BRASILIA, Sept 4 (Reuters) - Brazil's wealthiest captured a record share of national income under President Luiz Inacio Lula da Silva, tax-return data show, offering a striking counterpoint to the leftist leader's effort to convince voters that gains have been widely shared under his administration as he seeks reelection in October.
Lula has pointed to falling inequality, as measured by a record-low Gini coefficient in 2024, and rising employment as evidence that his administration prioritizes poorer Brazilians.
But tax-return data paint a more complex picture: high interest rates, partly a consequence of increased government spending, fueled a boom in financial income that disproportionately benefited the wealthy, even as stronger labor markets, wage gains, and social programs improved conditions at the bottom of the income distribution.
"If government benefits, on the one hand, are well targeted, they can have a positive social impact," said Otaviano Canuto, a former World Bank vice president.
#income #record
2 months ago
