For the second time since taking office (April 2), the government of Luis Montenegro ignores the “living wage” figure in financial matters. The first was last month when the Prime Minister announced IRS rate cuts and tax breaks for €550 pensions, the second this week when Minister Margarida Balseiro Lopez presented IRS Jovem calculating tax savings for those earning €820 . Euro.
It turns out that the “living wage” figure ensures that all taxpayers have some disposable income on which they do not pay tax, and thus have enough money to guarantee their existence. In 2024, this cost increased to 820 euros (i.e. 11,480 euros per year).
So the government’s examples of tax savings for young people last Thursday are wrong. With a salary of 820 euros, there cannot be an average annual saving of 980.98 euros, since a salary of that amount does not pay the IRS. Due to the mechanics of the tax, an income of 900 euros cannot have an average annual saving of 1183 euros.
Author: Miguel Alexander Gagnan([email protected])
Source: CM Jornal
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