The progressive and necessary adjustment in the table of personal income tax

Abstract

Until 1988, even without constitutional provision in this sense, the PIT was informed by the criterion of progressiveness. Paradoxically, in the year that the Federal Constitution was enacted 1988 to constitutionalize the obligation of the tax on income and earnings of any nature to be informed by the criterion of progressiveness, the legislature infra wrought radical changes, reducing the number of rates and as the percentage corresponding to the maximum applicable rate. Thus, since 1989, the rates that apply to the Income Tax became only two, seriously compromising the progressivity of the PIT. Added to this, lack of adjustment required in the PIT table, has caused problems in rule-array of tax incidence, especially in the consequent (prescriber), for the quantitative criterion (the tax base and tax rate).