Brazilian federal tax income sets a record in July 2021

So, good and bad news, let’s look into it:

Good news: an increase in tax income for the government usually signifies an increase in money circulation, which is probably good news for the GDP. It could be a one-off for a major government operation, which then would not mean its good news, it would be an outlier.

Bad news: more money taxed away from the economy means the economy shrinks. If there is an increase in government spending above the amount taxed then we would see an increase. By itself its hard to understand the impact of higher tax income. It is also bad news if it is caused by inflation an no actual growth, which seems to be the case, at least partially.

On a side note, if the tax income is mostly coming from commerce and personal income, then its a bad thing, as it drives a bigger disparity between rich and poor. This is the most likely source of the tax income, so its generally a bad thing. Taxation is good for the country and the currency’s worth, but it must be fair. Its not.