Renan Santos: If a person is hired under the CLT, they lose half of what they should receive to give to the government as taxes.
Renan Santos: They know it's not worth it; the person prefers the MEI.
So, what we can create is a regime in which we increase the base, because we reach the informal sector — everyone contributes, and as we increase the tax base, everyone contributes less, but the system remains viable.
Renan Santos: This is the model.
Renan Santos: The social security system stays standing; everyone will pay less tax because the base increases, but everyone is formalized and everyone becomes a holder of rights.
