1 THE EVOLUTION OF THE TAX BURDEN
The main constant in the evolution of Portuguese public policies has been the permanent increase in fiscal pressure (including Social Security charges), which contrasts with the paradigmatic case of Ireland, whose relative position in the EU continues to improve while ours gets worse. considering it advantageous to remember its value as a percentage of GDP (see here):
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And no less important is analyzing the evolution of the tax burden on family income (work, etc.) including Social Security charges:
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two THE FAMILY INCOME PENALTY
The evolution represented is very illuminating because while Ireland reduced the global rate by around 38%, Portugal followed the opposite path, increasing by 31% but even more significant is the burden preferred by our governments to penalize families because while our global rate of income growth is 31%, the rate related to the contribution of families rises 42%, that is, in percentage, the growth of this rate exceeds the global rate by more than 35%.
3 THE SUPPORT PLAN FOR FAMILIES
The announcement of this Plan, made with pomp and with the foreseeable presidential blessing on September 5, is especially interesting because it would be foreseeable that, in a context of family income suffocation given galloping inflation and taking into account the synthesized evolution, it would bet on tax relief, but the opposite happened: the solution of punctual control and the anticipation of part of the increase in pensions is preferred, harming post-2023 growth. The only references to taxes include an infinitesimal reduction in VAT on the electricity rate and an unquantified reduction in the tax burden on homeowners’ income, presuming that it will be quite low, since, otherwise, it would have already been announced . to increase the communicational impact.
4 THE HORROR TO REDUCE THE TAX BURDEN
Physics evolved in the past with the paradigm of the horror of the void, and even the ether was invented to fill the void, but, curiously, modern advances confirm that the transmission of gravitational forces is based on wave processes that traverse space. Now, this Plan confirms that our policies are no less based on a feeling of deep horror: not the void, but the reduction of the fiscal burden, especially the one that crushes Portuguese families, even when their income comes solely from their daily work. . , combating the obstacles of the state bureaucracy and inflationary surprises.
Source: Observadora
