Analysis-Income tax break adds to Lula's economic tailwinds ahead of Brazil election


Brazil's President Luiz Inacio Lula da Silva speaks during a ceremony to launch a digital platform for tax reform in Brasilia, Brazil January 13, 2026. REUTERS/Adriano Machado

BRASILIA, Feb 11 (Reuters) - A middle-class tax break that nearly halves the ⁠number of Brazilians paying income taxes is adding to economic tailwinds that give President Luiz Inacio Lula da Silva an edge in early opinion polls as he gears up to run ⁠for reelection.

The measure, one of his hallmark promises from the 2022 campaign, reflects an effort to widen the leftist leader's appeal beyond his traditional lower-income base.

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