SDP asks PS to “shake up its conscience” and reduce taxes “reasonably”

The SDP said on Tuesday that the PS would hold a “clap test” when voting on its tax cut proposals, requiring a “shock of conscience” to approve the Social Democrats’ “reasonable but significant” tax cuts.

The PSD presented at a press conference on Tuesday five tax-cut initiatives that party president Luis Montenegro announced in mid-August and which will be submitted to parliamentary debate on September 20 – four bills and one draft resolution.

“On the 20th, the PS faces the last cotton test of how it wants to treat the Portuguese, in particular the middle class, in terms of financial suffocation,” said party vice-president António Leitan Amaru, blaming the Socialists for the last 8 years of consecutive promises cuts, but every year they break “tax burden records.”

The Social Democratic leader said the SDP was proposing “significant but responsible and reasonable tax cuts.”

“Will there finally be a shake-up of conscience on the part of the PS and recognition of the need to reduce taxes on the middle class and youth? Or will they continue to preach and refuse the responsible but significant reduction proposed by the CoP? PSD?” he asked.

At the press conference, SDP leaders were asked about the wisdom of their proposals, including cutting the IRS by €1,200 million for both 2023 and 2024, by reducing marginal rates for 2024 for all tiers except the latter .

PSD parliamentary leader Joaquim Miranda Sarmento said the proposals are “perfectly reasonable,” stressing that the proposed cuts are financed by excess tax collection due to rising inflation that will continue into next year.

“Even if there is an economic downturn, we will still have an inflation rate well above 2%, we will continue to have this hidden tax that impacts those with less income more,” he said.

Leitan Amaro also emphasized that there is no organization that predicts a deflation scenario for 2024.

“The tax cut proposals presented by PSD are conservative, fiscally and fiscally sound solutions that will ensure that fiscal consolidation efforts continue even as the economy changes,” he said.

SDP leaders also said their proposal for tax breaks for young people under 35 (with a maximum rate of 15%, excluding the latter group) was more beneficial than the proposal presented last week by the Prime Minister.

“The PSD proposal reduces all fees by two thirds, the PS has chosen a decreasing discount that changes every year,” said Leitan Amaro, calculating that over ten years “the PS proposal forces young people to pay an additional seven thousand euros.”

The SDP “deputy” even considered that the PS “once again treated young people in an unacceptable manner.”

“The problem of young emigration cannot be solved by providing diminishing tax relief over three or four years, train tickets or youth hostel holidays,” he said.

In addition to cutting the IRS by reducing marginal rates in various groups and a 15% top rate for young IRSs, PSD also proposes a mandatory update of IRS groups based on inflation – a mechanism to allow Parliament to decide what exactly what tax surpluses as well as exemptions are from the IRS and TSU for performance bonuses of up to 6% of annual base salary.

At a press conference, the SDP parliamentary leader accused the government of “tax fraud” and said that “taxes need to be cut now”, estimating that by July the government had already collected almost twice as much tax revenue as it planned to record. , during a year.

Asked whether PS Carlos César’s recent call for greater openness to the PSD consensus could increase the likelihood of these proposals being approved, Miranda Sarmento emphasized that Social Democratic diplomas are “destined for the country.”

“There is an absolute majority in this chamber, and everyone must evaluate what is best for the country,” he said.