THE POSSIBLE ECONOMIC IMPACTS CAUSED BY THE IRPF LAG

ABSTRACT

Individual Income Tax is a type of tax, its table is progressive and has been considered one of the most important taxes in the country. Updating your table is essential to reverse the injustice caused by the tax system, since the beginning it does not follow the country's inflation, being updated according to the current law of each year, but the last update took place in 2015 and since then this outdatedness has been affecting the population, especially the middle class, implying that they have a higher purchasing power than their reality. In view of so many events that have emerged over these years, especially in 2020 with the Covid 19 pandemic, which required strict measures to reduce the spread of the virus, caused the modification in the table to be postponed once again, affecting especially those with lower income that should be exempt if it followed inflation, on the other hand, if updated, it will generate considerable losses for the country. This research presents the economic effects on the population caused by not updating the IR table, and how the gap affects them, also explaining what it will entail for the State if it is updated. For a better understanding of the subject, the concept, purpose and its history in Brazil will be discussed. With so many failures not only in the tax system, who always ends up bearing the consequences is the population, who often, because they are laypeople on the subject, end up ignoring the importance of updating the IRPF table.