Some critics note that Mr Magalhaes's sudden concern for the poor dates back to a row last month over the tax breaks and government loans offered to Ford to build a car factory in his home state, Bahia. Mr Cardoso vetoed a bountiful package rushed through Congress by Mr Magalhaes, and persuaded Ford to accept a lesser, though still attractive deal. Having shown his willingness to throw taxpayers' money at a foreign multinational, now he is proposing the same for the poor. Even if it is a mere passing tantrum, rather than a strategic decision to stop supporting further reforms, Mr Magalhaes's antics are in fact putting them at risk. With the government asking Congress to approve a controversial but much-needed simplification of the tax system, this is the worst possible time for a supposed ally to be confusing matters by proposing yet another layer of taxes.
Brazil already taxes heavily, and spends the proceeds inequitably.
Already Mr Cardoso has been obliged to wobble on some of his pension-reform proposals, such as changing the constitution to impose minimum retirement ages. Besides, the renewed weakness of the real, triggered by political worries, makes further cuts in interest rates unlikely, delaying economic growth-and thus increasing poverty. For Mr Cardoso, and now for Brazil's poor, Mr Magalhaes is an ally to be feared.