The PSD declared on Tuesday that the PS will face its “cotton test” when voting on its tax cut proposals, asking for a “shock of conscience” to approve the Social Democrats’ “cautious but significant” tax cut.
At a press conference today, the PSD presented the five tax reduction initiatives that party chairman Luís Montenegro announced in mid-August and that will be discussed in parliament on September 20: four bills and a draft resolution.
“On the 20th, the PS will face its final cotton test on how it wants to treat the Portuguese, especially the middle class, with regard to fiscal suffocation,” said party vice-president António Leitão Amaro. They accuse the Socialists of promising successive cuts over the past eight years, but breaking “tax burden records” every year.
The Social Democratic leader defended that the PSD is proposing a “significant, but responsible and prudent tax cut”.
Will there finally be a shaking of conscience on the part of the PS and acceptance of the need to reduce taxes for the middle class and young people? Or will they continue to promote and refuse the responsible but significant reduction proposed by the PS? PSD?” he asked.
At the press conference, PSD leaders were asked about the prudence of their proposals, which include the reduction of the IRS by 1,200 million euros both in 2023 and for 2024, by reducing the marginal rates for 2024 of all echelons, with the exception of last.
The PSD’s parliamentary leader, Joaquim Miranda Sarmento, defended that these proposals are “completely prudent”, stressing that the proposed cuts are financed by excessive tax collection due to the rise in inflation, which will continue next year.
“Even if there is an economic slowdown, we will continue to have inflation levels well above 2%, and we will continue to have these hidden taxes that hit people with less income more,” he said.
Leitão Amaro also emphasized that there is no entity predicting a deflation scenario before 2024.
“The tax reduction proposals presented by the PSD are conservative, they are fiscally and financially sensible solutions that guarantee that fiscal consolidation efforts are maintained even in the event of fluctuations in the economy,” he said.
PSD leaders also defended that their proposal for tax relief for young people up to the age of 35 (with a maximum rate of 15%, except in the last bracket) is more beneficial than the proposal presented by the Prime Minister last week.
“The PSD proposal reduces all fees by two-thirds, the PS opted for a decreasing reduction that changes every year,” said Leitão Amaro, who calculated that, over a ten-year period, “the PS proposal ensures that the young people pay seven extra. thousand euros”.
The ‘deputy’ of the PSD even thought that the PS “has once again treated young people in an unacceptable way”.
“You cannot solve the problem of young emigration by offering decreasing discounts on the IRS, train tickets or holidays in youth hostels over three or four years,” he said.
Source: DN
