Livre intends to see larger IRS rate cuts in the lowest income groups and increases in the bottom groups, ensuring a reduction in the average rate across all groups and “more progressivity.”
“With this proposed change to the IRS bracket table, the average rate for all income brackets will be lower than what is in effect for 2024, while ensuring that the highest income brackets’ profits do not exceed taxpayers’ profits. with income in the intermediate and lowest groups,” can be read in the Livre account to which Lusa had access this Monday.
According to the party’s proposal, the change “promotes greater progressivity and tax fairness while reducing the average effective income tax rate for all but the last bracket.”
“The main impact of this LIVRE proposal is an increase in the progressivity of the IRS, as measured by the Kakwani index and the EUROMOD Online 3 simulator. The same modeling as the proposed tax reform also allows us to anticipate a reduction in the risk of poverty levels,” it is also emphasized.
The bill table suggests a normal rate for Tier 1 of 12%, followed by 16% for Tier 2, 21.75% for Tier 3 and 25% for Tier 4.
This is followed by 32.5% for the 5th level, 36.75% for the 6th level, 43.75% for the 7th level, 45.5% for the 8th level and 49% for the last one.
In the document, Livre also accuses the government of presenting a “deception” about the IRS.
“What the government proposed was a simple fiscal intervention of around €200 million, mainly affecting the highest levels of the IRS table. The remaining $1,300 million in IRS cuts ultimately came from the 2024 state budget due to IRS liability. previous government,” he stressed.
“Livre understands that progressivity is a core principle of financial fairness. The principle that whoever earns more income should contribute more to the proper functioning of public services, public schools and the National Health Service is itself one of the foundations of the welfare state,” he added.
The IRS rate change is being debated by Parliament on Wednesday, and there are already proposals for changes from other parties.
Author: Lusa
Source: CM Jornal
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