📜 Lula’s dream, Lira’s leverage

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Former speaker stands between Lula and his dream bill 

Congressman Arthur Lira, who served as House speaker between February 2021 and 2025, has been appointed rapporteur of a bill to raise the income tax exemption threshold. As the bill is the government’s top legislative priority ahead of the 2026 election, Lira’s role keeps him in a position of real political power, even after leaving the speakership. 

👉 Why it matters. A bill’s rapporteur is responsible for drafting the final version that goes to a floor vote — making it a crucial role in the legislative process.

The backdrop. The government wants to expand income tax exemptions to all individuals earning up to BRL 5,000 (USD 888) per month, a move aimed at providing relief for lower-income citizens. The government claims that the reform will be fiscally neutral. It will benefit 10 million workers while hiking tax rates for roughly 141,000 high-earners who will be taxed more at source.

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