CONSTITUTIONAL ANALYSIS OF LAW Nº 14.663/2023 WITH A VIEW TO THE PRINCIPLE OF CONTRIBUTIVE CAPACITY

Abstract

The principle of taxable capacity aims to ensure that taxes will be collected in accordance with the taxpayer's means. On August 28, 2023, a new law was enacted that brought with it changes to the minimum wage adjustment policy and the Personal Income Tax (IRPF) table. This research is justified by the relevance and timeliness of the topic, considering the direct impact that the tax system has on the lives of citizens and on the country's socioeconomic development. In addition, the analysis of Law No. 14,663/2023 in light of the Principle of Taxable Capacity is essential to assess the effectiveness of tax policies in promoting a more equitable distribution of the tax burden and, consequently, reducing social inequalities. The objective of this paper is to investigate the adequacy of the law with a view to the Principle of Taxable Capacity, present the law, define the principle of taxable capacity, and discuss the socioeconomic impacts of the application of the legislation in the distribution of the tax burden. This study is a qualitative literature review that will be carried out through bibliographic, doctrinal and legislative research, where all relevant material for the topic discussed will be selected, classified and documented. Law No. 14,663/23, by incorporating the Principle of Contributory Capacity into its provisions, has the potential to promote fairer and more equitable taxation in Brazil. It is believed that this legislation could contribute to a more effective redistribution of the tax burden, ensuring that those with greater financial capacity contribute more proportionally to the financing of public expenditures.