Increase the Social Support Index (IAS) by the estimated inflation rate of 7.4% or decrease the IRS to the sixth bracket (inclusive), while the parentheses are updating at the same rate. Here are two measures that the DN knows the PSD will propose to include in the 2023 State Budget (OE2023) and which are considered “priorities” by the party.
As a result, those who receive benefits such as unemployment benefits, Inclusive Income (RSI) or child benefits will not lose purchasing power in the coming year, while all taxpayers up to and including the sixth level (i.e. with an annual salary up to 36,757 euros) will receive a tax relief “on income from work,” the party said. Together, these measures have cost an estimated 800 million euros, the DN learned from a parliamentary source.. The IRS abatement measure, the same source states, would be financed “at a cost of one-third of the surplus, i.e. EUR 1.3 billion”, representing a total cost of EUR 400 million: the same amount that the Treasury has to pay. raise the IAS with inflation.
According to the same source, these measures will cover about 80% of taxpayers (about five million people), in the case of the IRS, with more than one million people benefiting after the increase in the Social Support Index.
There is also a third measure that the PSD considers a priority for inclusion in next year’s state budget: the application of a maximum IRS rate of 15% for young people under the age of 35, including an update of the IRS levels.
In the document to which the DN had access, the social democrats defend that the presentation of these measures is part of the idea of building an alternative government, “a policy typical of democracies”. This Thursday, at 6 p.m., Joaquim Miranda Sarmento, parliamentary leader of the PSD, gives more proposals and specifies more proposals that, in the opinion of the party, should be considered a priority in the context of the state budget for 2023, which will be submitted to the Assembly of the Republic the following 10th, Monday.
PSD parliamentary source also explained that while there are some measures that are similar to the anti-inflation package — “or even the same,” he explained — the major difference is related to the period in which they are applied: if , in the case of the package presented at the beginning of September, the measures were in force until the end of the year, in this case the application of the proposals now announced will be carried out during the next year of 2023. therefore that “the phased costs are smaller” than when applied over a period of months. At the time, the party proposed lowering the IRS to the fourth, fifth and sixth levels – something they now only want to see applied in the latter case.
The set of priorities presented by the Social Democrats this Thursday, and as specified in the document, it is divided into at least five lines of action: “youth, the most disadvantaged sectors of society, income over work policies, birth support and even proposals targeting companies” to boost competitiveness.
the three priorities
Increase in IAS by 7.4%: By implementing this measure, it is possible that those who receive a social pension such as the RSI or unemployment benefits will not lose purchasing power in 2023, the PSD states. Estimated total costs: 400 million euros.
Less Tax on the IRS: The PSD also intends to “reduce the tax burden on labor income”. In other words, lower the IRS to the sixth step, updating the steps to estimate inflation. Estimated cost: 400 million euros.
Youth IRS with maximum rate: For all persons up to the age of 35, the PSD also plans to apply a maximum rate of 15% in the IRS (except in the last step), which already includes the update at the rate of 7.4%.
Source: DN
