About the votes presented

This law regulates the proclamation of judgment results in the event of a tie vote within the Administrative Council of Tax Appeals, and provides for tax compliance within the Special Secretariat of the Federal Revenue of Brazil of the Ministry of Finance, as well as for low-complexity administrative tax litigation.

The amendment removes from the text the possibility of making a voluntary disclosure until the last day of the month following the publication of this law.

The reform seeks to modernize tax collection to enhance the competitiveness of businesses. The ideal tax system is one that preserves a level playing field in competition, ensures the competitiveness of companies, and fosters the development of the country's skills and strengths.

It defines crimes of discrimination against politically exposed persons, against persons who are responding to a preliminary investigation, a summary proceeding, an inquiry or any other investigative procedure for a criminal, civil or administrative offense, or against persons who are defendants in ongoing legal proceedings.

However, the text underwent a series of modifications and, in the version that will go to the Senate, it is limited to dealing exclusively with situations involving financial institutions, such as refusal to open a checking account and grant credit, for example.

On March 30th, the current government presented its proposal for a new fiscal framework, after months of discussions and years of tension related to the spending cap. Experience with the previous tax rule brought benefits, especially the reduction in interest rates imposed on government bonds due to its credibility regarding the need for public debt stability. Additionally, the rule also made the approval of the pension reform, enacted in 2019, more urgent, and led to greater control over the public sector payroll, considered high compared to countries at a similar level of development and constantly growing, in contrast to the private sector, where salaries have shown a much more moderate trend.

Bad aspects of the text:

• Reduced flexibility: One of the main disadvantages of the fiscal rule is that it limits the government's ability to respond to changes in economic conditions. This reduced flexibility can be problematic, especially during economic recessions, when increased government spending may be necessary to stimulate growth and support vulnerable populations. We saw this during the Covid-19 pandemic.

• Potential procyclical fiscal policy: Strict adherence to the fiscal rule can lead to a procyclical fiscal policy, in which government spending is cut during economic recessions, exacerbating the negative impact on growth and employment.

• Inadequate focus on long-term investments: The fiscal rule's focus on short-term spending limits can lead to underinvestment in long-term priorities such as infrastructure, education, and research and development.

• The trade-off between flexibility and predictability in fiscal policy is a central theme in the literature. While it is argued that fiscal rules should be designed with escape clauses or countercyclical elements to allow flexibility during times of economic stress, an overly flexible framework can undermine the rule's credibility, making it less effective in promoting fiscal discipline and stabilizing public debt in the medium term. Finding the right balance between flexibility and predictability is essential to ensure that fiscal rules are effective and adaptable to changing economic conditions.

On March 30th, the current government presented its proposal for a new fiscal framework, after months of discussions and years of tension related to the spending cap. Experience with the previous fiscal rule brought benefits, especially the reduction in interest rates imposed on government bonds due to its credibility regarding the need for public debt stability. Additionally, the rule also made the approval of the pension reform, enacted in 2019, more urgent, and led to greater control over the public sector payroll, considered high compared to countries at a similar level of development and constantly growing, in contrast to the private sector, where salaries have shown a much more moderate trend.

Bad aspects of the text:

• Reduced flexibility: One of the main disadvantages of the fiscal rule is that it limits the government's ability to respond to changes in economic conditions. This reduced flexibility can be problematic, especially during economic recessions, when increased government spending may be necessary to stimulate growth and support vulnerable populations. We saw this during the Covid-19 pandemic.

• Potential procyclical fiscal policy: Strict adherence to the fiscal rule can lead to a procyclical fiscal policy, in which government spending is cut during economic recessions, exacerbating the negative impact on growth and employment.

• Inadequate focus on long-term investments: The fiscal rule's focus on short-term spending limits can lead to underinvestment in long-term priorities such as infrastructure, education, and research and development.

• The trade-off between flexibility and predictability in fiscal policy is a central theme in the literature. While it is argued that fiscal rules should be designed with escape clauses or countercyclical elements to allow flexibility during times of economic stress, an excessively flexible framework can undermine the rule's credibility, making it less effective in promoting fiscal discipline and stabilizing public debt in the medium term. Finding the right balance between flexibility and predictability is essential to ensure that fiscal rules are effective and adaptable to changing economic conditions.

On March 30th, the current government presented its proposal for a new fiscal framework, after months of discussions and years of tension related to the spending cap. Experience with the previous tax rule brought benefits, especially the reduction in interest rates imposed on government bonds due to its credibility regarding the need for public debt stability. Additionally, the rule also made the approval of the pension reform, enacted in 2019, more urgent, and led to greater control over the public sector payroll, considered high compared to countries at a similar level of development and constantly growing, in contrast to the private sector, where salaries have shown a much more moderate trend.

Bad aspects of the text:

• Reduced flexibility: One of the main disadvantages of the fiscal rule is that it limits the government's ability to respond to changes in economic conditions. This reduced flexibility can be problematic, especially during economic recessions, when increased government spending may be necessary to stimulate growth and support vulnerable populations. We saw this during the Covid-19 pandemic.

• Potential procyclical fiscal policy: Strict adherence to the fiscal rule can lead to a procyclical fiscal policy, in which government spending is cut during economic recessions, exacerbating the negative impact on growth and employment.

• Inadequate focus on long-term investments: The fiscal rule's focus on short-term spending limits can lead to underinvestment in long-term priorities such as infrastructure, education, and research and development.

• The trade-off between flexibility and predictability in fiscal policy is a central theme in the literature. While it is argued that fiscal rules should be designed with escape clauses or countercyclical elements to allow flexibility during times of economic stress, an overly flexible framework can undermine the rule's credibility, making it less effective in promoting fiscal discipline and stabilizing public debt in the medium term. Finding the right balance between flexibility and predictability is essential to ensure that fiscal rules are effective and adaptable to changing economic conditions.

This refers to Bill 2630/2020, which establishes the Brazilian Law of Freedom, Responsibility, and Transparency on the Internet – popularly known as the "Fake News Bill" or " Censorship Bill ".

In short, the legislative proposal addresses the regulation of providers (social networks, search engines, and instant messaging); remuneration for journalistic content; digital advertising; the crime of fake news; promotion of education for internet use; protection of children and adolescents; joint liability of providers; among others. It should be noted that the substitute bill under analysis, lacking reasonableness and clarity, and under the false pretense of protecting public order, the reputation of others, and morality, as well as promoting knowledge, restricts and regulates freedom of expression; interferes with strategic assets and business methods; and impacts the freedom of free enterprise.

Indeed, it is evident that technological advancements, especially the emergence of social media and other mass communication platforms, raise concerning questions about how to preserve the ideals of freedom of expression, promote the diversity of voices and ideas, protect children and adolescents, and, in particular, discourage the spread of knowingly false news and propaganda. In this respect, it is necessary to acknowledge that social media platforms do not disregard or fail to give importance to the concerns expressed in the justification of the proposal.

The current self-regulation approach demonstrates that platforms are part of the solution: Meta, Twitter, YouTube, Google, and other technology companies signed an agreement with the Superior Electoral Court (TSE) last year to combat disinformation in the 2022 elections¹, as well as signing European Union Codes of Conduct against hate speech² and disinformation³ on social media, in which they commit to using commercially reasonable efforts to combat the identified problems. Furthermore, WhatsApp has limited the forwarding of messages⁴ to contain disinformation about the coronavirus⁵. Additionally, we recall that these platforms, by facilitating debate on matters of public interest, play a role of utmost importance, and in some cases, can also act as a "watchdog" for the Public Authorities.

In this sense, it is important to clarify that freedom of expression, one of the essential foundations of a democratic society, applies not only to information or ideas considered favorable, harmless, or similar, but also to those that offend, shock, or disturb the State or any sector of society. Thus, it is important to emphasize the need for extreme caution before suggesting that the right to freedom of expression offers little protection for the dissemination of information and opinions, even dissenting ones, on social media. In any case, it should be noted that truth is a subjective concept, constructed in an environment of competing theories. Thus, the following question remains: who defines what is in fact untrue? It seems to be the Brazilian State.