Centeno: Next budget will be relief for people with higher incomes – Jornal de Negócios – Portugal

The Budget this year “benefits more people with lower incomes.” The next will be another sense of relief of those who are “at the top of the income distribution,” says Finance Minister in an interview with the Daily News. Not necessarily the rich

Mario Centeno part of the question to answer:. A person with a gross income of 2,000 euros per month is rich? The minister said that from the point of view of the Treasury, who wins this value in Portugal is treated like a privileged. “A person who has a gross income of 2,000 euros per month is in the dispensing position of who pays taxes in Portugal, highly privileged,” said the minister in an interview published on Tuesday, February 9.

While not a rich person, at least in the European context, as pointed out by Mário Centeno, she “really is in a leading position in the distribution of income. it is appropriate therefore that person is penalized from a tax point of view, at least the relative point of view? With many limits, because otherwise deslaçamos also what is social cohesion “.

If the budget this year” benefits more people with lower incomes “,” politics tax underlying the budget next year, which will begin to be prepared very quickly, you have this other sense of relief these people who are at the top of the income distribution, “says the Minister of Finance. Also because “call them rich think is way overdone.”

Centeno prefer restrictions austerity

Besides the finance minister recognizes that austerity is not over. “We continue with restrictions. I like the word restrictions than the word austerity.” The aim is to continue to reduce the tightening in the coming years. “The turn of austerity page is a process that has to be seen gradually implemented in each financial year and underpinned by economic growth that has to marry well with the budget changes.”

Mario Centeno points out the reduction in the tax burden, which in Budget 2016 “is reduced as a percentage of GDP anything as 0.22 percentage points.” This is because the restoration of direct taxes and indirect taxes, the first fall 0.61% of GDP and the latter grow 0.39% of GDP. Something that “as liberal” reputation of “very positive, because direct taxes tend to have a more negative impact on economic activity than direct.”

This path is to proceed through a low gradual abolition of taxes on labor. “The goal is to achieve a gradual reduction in what the budget constraint allows us”. Later in the interview is the warning “no ability any of accelerating what was already scheduled.”

On other measures of the government program, but who are not in the budget, such as the diversification of sources of financing of Social Security, which includes the penalty of excessive rotation of workers, the minister ensures that have not been abandoned. Will be discussed “in a general context, employers’ unions and associations.” The same applies to the tax on inheritances or the descent of the TSU employers. Also the tax credit for workers with lower incomes only not advanced “for reasons of necessity to study the measure”.