These positions were conveyed by António Leitão Amaro, in a press conference, at the end of the Council of Ministers, after being confronted with the fact that the Executive's Great Plan Options maintain the objective of reducing the IRS up to the 8th income bracket - a measure that is mainly opposed by the parliamentary left.
António Leitão Amaro observed that, at the moment, “there is no law in force in a different sense” and that the Government assumes this line of relief as “an objective of the legislature”.
“This is a Government that lowers taxes. We want less taxes on people and less taxes on corporate income. We will continue to present, it is no provocation”, claimed the member of the executive.
The Minister of the Presidency then referred to the recent failure to approve the Government's proposal in parliament to reduce the IRS up to the 8th level, with an alternative approval of a PS diploma in which the tax reduction only extends to the 6th level income bracket.
António Leitão Amaro did not speak about the parliament's decree that awaits a decision to promulgate by the President of the Republic, Marcelo Rebelo de Sousa, but rather highlighted his executive's legislative objectives.
“In our proposal regarding the IRS for the middle class, we insisted and insisted that it was good to have more relief for the middle class. We think it is more appropriate and fair from an economic and social point of view to reduce the IRS further for the middle class. Around 330 thousand families in the 6th tier were harmed because the initial proposal presented by the Government was not followed,” he claimed.
From a political point of view, the Minister of the Presidency defended the thesis that, in parliament, “there was always availability for approximations”. And, in this context, he invoked the salary agreements already concluded by his executive with some professional categories.
“An agreement was signed with structures representing teachers, court officials, security forces, and prison guards, demonstrating true and effective dialogue. In parliament, we have dialogues about the anti-corruption agenda, about immigration or about housing”, he pointed out.
Afterwards, he sought to leave a guarantee: “We will have an open stance of those who recognize the signs of the Portuguese regarding the choices for governance and dialogue for a transformative political project, where lowering taxes on work and then on companies are fundamental priorities”.
About time too! It's indecent to have a 48% income tax rate on incomes over €81,199. Way too high on way too low and income. No-one should forget that a person's income is theirs - it doesn't belong to the government to confiscate.
Taxes have to be reasonable for people to pay them. So few people are aware of the Laffer curve, where higher rates of tax discourage effort and cause people and capital flight, leading to generating less tax revenue.
There is an implicit insinuation on the Left that people with high incomes shouldn't get so much, or that they've earned it dishonestly, or are dishonest in respect of declaring their income for tax purposes. High tax rates come down to personal jealousy and a vindictive desire to hit people perceived to be more successful than you. That's hardly a basis for sound financial policy.
By Billy Bissett from Porto on 12 Jul 2024, 10:35