Brazil to Exempt Millions From Tax and Boost Levies on the Rich

President Luiz Inácio Lula da Silva’s government secured a major victory after senators approved a bill to exempt tens of millions of middle class Brazilians from income tax.

It’ll partly fund this through higher levies on top earners and on dividends.

The bill raises the threshold for paying income tax to 5,000 reais ($930) per month, from 3,036 reais. It also cuts the rate for workers earning between 5,000 and 7,350 reais.

The measure, one of Lula’s main campaign promises, aims to help poor and middle-income households while reinforcing his message of social inclusion. The proposal had already passed ...