Brazil Politics: Lula’s Tax Hike Faces Pushback in Congress

President Luiz Inacio Lula da Silva’s proposed tax increase to offset new income tax exemptions for low-income earners is already facing pushback in Congress.

Lula presented his long-awaited proposal to exempt workers with monthly salaries of as much as 5,000 reais ($880) from income taxes Tuesday, part of his effort to turnaround falling approval ratings. The government will seek to compensate for the cost of the plan by raising taxes on incomes above 50,000 reais per month.

Lower House Speaker Hugo Motta, however, indicated that Congress would consider removing other tax exemptions to offset the revenue loss, according ...