The principle of contributory capacity and the non-correction of the personal income tax table

Abstract

The tax issue in Brazil is marked by intense discussions, especially regarding tax reform, due to conflicts of interest between the application of taxes and the state's funding needs. The search for a fair and coherent taxation system that respects principles such as equality and contributive capacity is a constant challenge. The Income Tax, a federal tax established in the 1988 Constitution, is governed by the principles of generality, universality, and progressivity, affecting profits from business activities and personal income. The legislation advocates for the progressive application of rates, aiming at fiscal justice and the reduction of social inequalities. However, the last update to the calculation bases for the Personal Income Tax (IRPF) occurred in 2015, and the lack of monetary correction since then has raised questions about the offense to the principle of contributive capacity, due to the disregard for inflation and the decrease in citizens' purchasing power.