The SDP is recommending that the government revise the IRS tables within fifteen days, reducing marginal rates in all but the last category, and rejects that its proposal violates the so-called “brake rule.”
The five tax cut initiatives that the PSD announced in mid-August and which will lead to the parliamentary debate on September 20 – four bills and a resolution – will now be available on the Assembly of the Republic website. Tuesday to Friday at a press conference.
It is in the form of a draft resolution – a recommendation to the government – that the Social Democrats translate one of the most symbolic measures announced at the Festa do Pontal by PSD leader Luis Montenegro: the reduction of the IRS in 2023. by 1,200 million euros.
In another thesis, which already has the force of legislation, the SDP proposes keeping the IRS cuts in place in 2024, just as it is advocating this year.
In the draft regulation for 2023, the SDP argues that this IRS reduction is “offset by and less than both the excess of total tax revenues (from 2,150 to 2,500 million euros) and the excess of the IRS revenue component (from 1,300 to 1,800 million euros). ), compared to the revenue growth already provided for in the 2023 state budget.”
“Therefore, the tax relief intervention coming into force in 2023, and as long as it is within this interval, as is the case (with an estimated cost of 1200 million euros), complies with constitutional requirements (namely the “brake law”) and fiscal balance, as well as the deficit and public debt reduction targets proposed by the government and approved by the Assembly of the Republic for 2023,” defends the PSD.
Social Democratic Party parliamentary leader Eurico Brillante Diaz this week accused the PSD of “ignoring good budgetary practices and the brake law” and promising “permanent tax cuts while ensuring correct reporting.”
The so-called “brake rule” enshrined in the Constitution defines “bills, bills or proposals for amendments that propose, in the current economic year, an increase in expenditures or a decrease in government revenues provided for in the budget.”
PSD therefore recommends that the government submit to the Assembly of the Republic within two weeks a bill with a new IRS table, which will take effect immediately and will be accompanied by an adjustment to the income tax tables. IRS for the remaining months of 2023.
As already detailed, the PSD proposal involves reductions in marginal rates in all groups except the last, with a larger reduction (3 percentage points) between the third and sixth groups, which covers annual income from €11,284 to €38,632.
According to the SDP proposal, the reduction in the marginal rate in the first group will be 1.5 percentage points (from 14.5 to 13%), in the second – by 2 points (from 21 to 19%), with smaller reductions in higher groups. (0.5 percentage points in the seventh and 0.25 in the eighth), while the rates of the ninth and last group and solidarity contributions remain unchanged.
The Social Democrats give two specific examples, stating that “for a family with a gross income per taxpayer equal to the average monthly salary observed in 2022 (1411 euros), the annual benefit is estimated at 235 euros”, and for a family with a gross monthly income of twice the average (2,822 euros per month), “tax benefits amount to 741 euros” per year.
The bill extending the measure until 2024 is justified by the SDP’s belief that “this reduction should continue into the future”, with the party proposing the same table of rates it proposes for 2023, in this case from January next year. .
Author: Lusa
Source: CM Jornal
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