Marcos Cintra says that the income tax should be a single tax on payroll

BRASÍLIA. Economist Marcos Cintra, future Secretary General of Federal Revenue, told GLOBO that the income tax should be the only tax to be collected on the payroll. Cintra says that "cleaning up" payroll taxes is a priority of Paulo Guedes' team at the Ministry of Economy.

– The only tax that is justified on the wage, the worker's remuneration, is the RI – said Cintra.

He claims that this tribute must still include new parameters and that the others must be extinguished. The contribution base for the INSS will change and the currencies, such as the amounts collected for Incra, education, in addition to the S System, will be extinguished. In the words of the future secretary, these changes are intended to shock the management and use all available weapons to create jobs. He explained that the taxation of wages in Brazil reaches 50%. It does not count rights, like the FGTS, for example.

– Paulo Guedes (future Minister of Economy) wants to upset the jobs of the country and I already work there. Tax exemption is the starting point for tax reform and will have implications for other reforms, such as labor and social security, Cintra told GLOBO.

The proposal will be presented to the elected President, Jair Bolsonaro, with alternatives for the contribution of the employer to the INSS. Among them, there is the possibility of creating a tax on payments (incoming and outgoing), a kind of tax IOF (tax on financial transactions), a tax on billing.

The future secretary explained that it was necessary to change the funding base of social protection, because the current system has weaknesses, such as a high index of informality in the market of work and new terms of employment contracts. It is planned to draft the proposals in January for presentation to Congress at the beginning of legislative work in February. For the economist, the work of the projects can proceed in parallel with the social security reform, another priority subject of the future government.

Cintra revealed to GLOBO that the current Under-Secretary to the Receiver, João Paulo Fachada, would be his badistant secretary. Career officer, he is trained in mechanical engineering. He holds a Master's degree in Public Sector Economics and Tax Administration and Public Finance.