Even with Congress against it, PT and Lula intensify offensive for “taxing the rich”

Amidst defeats in Congress and low popularity in the polls, the PT and President Luiz Inácio Lula da Silva have decided to step up their political offensive in defense of what they call “tax justice.” The party released a video on Thursday (26) defending the government’s plan to exempt those earning up to R$5,000 per month from income tax and reinforcing the idea that the richest need to pay more.

In the video, the PT uses the acronym BBB — an allusion to the reality show on TV Globo — to refer to "billionaires, banks and bets", targets that, according to the party, should be taxed more to finance the exemption for the poorest. The piece is part of a series of at least five videos, which will be released on the party's channels. The campaign is coordinated by the Secretary of Communication, Jilmar Tatto.

On social media, President Lula also released a comic strip on Thursday (27) to explain that what his government wants is "tax justice" and not to increase taxes. "A lot of people have been talking about taxes in Brazil in recent days. It is important to understand what is actually being proposed. The government wants to make tax changes by combating privileges and injustices. It is to make the system fairer. It is simple: those who have more, pay - proportionally - more. Those who have less, pay less", says the post.

The strategy is part of a repositioning of the Lula government, which is trying to regain popular support on the eve of the 2026 municipal elections. The idea is to use issues such as taxing the rich, ending the 6x1 workday and combating high salaries as banners to confront privileges, resuming a classic left-wing discourse.

Within the Planalto, there is a diagnosis that the discourse of “defending democracy” has lost appeal among voters and that Bolsonarism has pushed this issue to the left. The focus now is on issues with the potential for popular mobilization, even if they encounter resistance in Congress.

“Lula has always been a president who looked out for the working people, the poorest people,” said the PT leader in the Chamber of Deputies, Lindbergh Farias (RJ). For him, the time has come to “have political clarity” about tax inequality in the country. “This is President Lula’s position and the position we will take.”

Popular support for taxing the richest

According to government allies, the idea of ​​taxing the rich has more social appeal than income tax exemption for the poor. A Datafolha survey released in April shows that 76% of Brazilians support charging more income tax to those who earn more than R$50,000 per month. The proposal for exemption for those who earn up to R$5,000 has the support of 70%.

The proposal from the Ministry of Finance foresees the creation of a tax for around 141 thousand people who earn more than R$600 thousand per year, a group that currently pays, on average, less than 10% of effective income tax.

Finance Minister Fernando Haddad has been defending the agenda since the beginning of his government. When commenting on the tax collection measures to comply with the fiscal framework, he mentioned the increase in taxation on fintechs, online betting and exclusive funds as measures that affect “the penthouse residents”.

Super salaries and working hours

In an attempt to expand the battlefield, the government should also support measures such as ending the 6x1 work week and combating excessive salaries in the public service. The proposal to reduce the weekly workload was mentioned by Lula in a speech on Labor Day. A PEC on the subject was presented by Congresswoman Erika Hilton (PSOL-SP), but it does not yet have the explicit support of the Planalto.

Regarding super salaries, the Treasury Department is considering supporting bills already under consideration in Congress. One of the bills has been stuck in the Senate's Constitution and Justice Committee (CCJ) since 2021.

Responsibility of Congress

The government base has also sought to shift responsibility for unpopular measures to Congress. The overturning of presidential vetoes that blocked the mandatory contracting of thermoelectric plants, for example, could add R$35 billion per year to electricity bills over the next 15 years. The Planalto intends to use this issue to reinforce that Congress has acted against the interests of consumers and fiscal sustainability.

Even without a majority in the Legislature, the government is trying to build a narrative that it is on the side of the poorest and fighting against privileges. The PT's media offensive and the government's strategic repositioning show that Lula wants to transform the fiscal dispute into a political — and electoral — dispute.