The PS describes as “regrettable” the position of the PSD and the CDS-PP in presenting a proposal for change to the IRS, which the socialists consider to be still fiscally unfair and does not favor the middle class.
The position of the socialists is contained in a statement from the respective parliamentary group in which they consider that the parliamentary dialogue process that was “ongoing” around the different proposals to reduce the IRS was “interrupted by the PSD” with its last proposal. which has now been presented to the Budget, Finance and Public Administrations Committee.
“For the PS, the position of the PSD and the CDS-PP is regrettable which, contrary to the good will of the Commission to allow the dialogue to continue also on the Government bill whose discussion period had already ended, now presents formally a final proposal. in Commission, asking the parliamentary groups to sign it, although it remains fiscally unfair and does not privilege the middle class,” states the PS parliamentary group in a statement.
This is a proposal to modify the PSD that reduces the rate for the 3rd and 4th levels by another 0.5 percentage points (PP) with respect to what was foreseen in the initial proposal that the Government sent to Parliament and that to the commission without voting in general.
In this new text, the Social Democrats also propose a reduction in the rate for the 6th bracket by 2 percentage points – pp (the Government defended 3 percentage points), maintaining the reductions recommended by the executive for the rates that apply to the 7th and 7th brackets. 8th. rows.
For the PS, however, the continued reduction of rates for these two highest income brackets means that the text presented by the PSD remains “fiscally unfair” because “it continues to privilege the 10% of families that earn the most, preferring reduce the rates of the 7th and 8th sections, without any impact on the middle class, instead of reinforcing the increase in rates in the lower sections and, thus, allowing the budget margin to be distributed among a greater number of families and especially in middle class families.”
The PS also reminds that when rates are reduced for the lowest brackets, everyone with higher incomes benefits, due to the progressive nature of the IRS.
Faced with this scenario, the socialists affirm that they will continue working on their project and on the others that are still under discussion in the specialty – remembering that the deadline to present modification proposals ends on May 31 -, ensuring that their objective “will always be “will try to reduce taxes on labor income for the greatest number of families in a fair and progressive way.”
The marginal rate currently in force for the 6th, 7th and 8th brackets of the income tax is, respectively, 35%, 43.5% and 45%. The proposed change to the PSD points to rates of 35%, 43% and 44.75%, in the same order.
Source: Observadora
