This Wednesday, Parliament is debating the government’s proposal to change IRS rates, with all parties presenting alternatives, with the outcome of the vote unknown given the balance of power in the Assembly of the Republic.
The government’s proposal, approved by the Council of Ministers late last week, includes rate cuts of 0.25 and 3 percentage points to the 8th income level, with the largest drop being 3 and 1.25 points respectively. , 6th and 8th income groups.
The decision angered the Socialist Party, which accused the government of focusing tax breaks (€348 million in 2024) on higher incomes, prompting the Socialists to push ahead with a proposed amendment that would concentrate the largest portion of tax breaks at lower levels .
“In the bill you will find more redistribution, more relief for incomes between 1,000 and 2,500 euros,” defended the parliamentary leader of the Socialist Party, Alexandra Leitan, pointing out that the Socialists’ initiative was designed taking into account the marginal budget included in the bill. government proposal.
After intense debate surrounding the government’s presentation of IRS rate cuts, the debate and vote on the executive proposal promises to test the balance of political power emerging from the March 10 election.
Without a majority in parliament, the government’s proposal will need to gain support from other party forces to become viable, and President Chegi has already admitted that his party could vote against the executive’s proposal and make the PS viable. claiming that you are closer.
The project presented by the PS will also be discussed at the plenary meeting this Wednesday, as well as the initiatives of the other opposition parties, also within the framework of the IRS.
In the case of Chega, the project also focuses on changing tax rates, proposing to reduce them to level 8, leaving only level 9 unchanged, corresponding to the highest income group.
The Liberal initiative is also discussing a proposal that would increase the specific deduction (the “rebate” that is automatically attributed to income from work and pensions), reduce tax rates and set the minimum cost of living at a level equivalent to 14 times the minimum wage for citizens. current value (820 euros).
The left bloc, for its part, introduced a bill that increases the amount of specific deductions and deductions for property deductions to 360 euros, and also repeals the rule that prevents people who received a mortgage after 2011 from taking advantage of this deduction.
The PCP project insists on the mandatory inclusion of income subject to special and liberal rates, such as rent, capital gains or interest, for those at the top of the social ladder, and also proposes to increase specific deductions, reduce rates affecting the first two groups and worsening those affecting the highest income groups.
Project Livre focuses on IRS rates, proposing a reduction in the rates that apply to the lowest brackets, an increase (from 48% to 49%) in the rate that applies to the 9th bracket, and changes to the income thresholds for each income level.
Also being discussed is the PAN project, which advocates the approval of an emergency financial program “that will guarantee a temporary update of IRS levels, an extension of the IRS Jovem regime and the restoration of a zero VAT regime on food from the essential goods basket.” “.
After the debate, the various initiatives will be put to a general vote.