THE CRISIS OF BRAZILIAN FEDERALISM AND THE PROPOSALS FOR FACING THE FISCAL WAR

Abstract

The Current paper intend to analyze if the tax reform proposals in progress the National Congress - Constitutional Amendment Proposals n. 45/2019 and no. 110/2019, are able to offer adequate solutions to contain the so-called “fiscal war” between the entities of the Federation. This because, in the current system, is usual the practice of some States of indiscriminately granting tax incentives, consisting of tax waivers, seeking to attract investments to their territory in the expectation of promoting the development of the region and the generation of jobs that, eventually, end up not materializing, generating conflicts between the federated entities. With the hypothesis that the tax reform proposals can mitigate the fiscal war, it is intended to verify the solutions presented by the referred proposals and investigate if they present real possibilities of success to face the problem.