Tax measures for young people in Portugal: The influence of ‘on falling’?
For the time being, it has only put on the table the proposals of the government partners, because it is not clear whether it will be able to approve the budgets, because the government has no parliamentary majority. It will seek consensus with the Socialists.
A young Portuguese woman, about 30 years old, Aurora, is the protagonist of the film On falling. He lives in Scotland and works in an immense Amazon-like warehouse, isolated, fighting the clock that technology imposes, having one more worker for the company, a low wage, miserable working conditions and a very precarious life. It is the prime opera of the Portuguese filmmaker Laura Carreira, and in part of her experience they have moved to Aurora, which has worked abroad.
Aurora can be the reflection of many inhabited worlds: emigrating in search of work and condemning the stay to work. The film is a contemporary portrait of the working class, a clear mirror of reality, the daily bread of Portugal, which can be extrapolated calmly to other places. The data is revealing: A quarter of Portuguese young people aged 15 and 39 live abroad, most of them in central and northern Europe. That is what a last report from the Research Institute of the University of Lisbon says, and that is what your government uses in its speech when the emancipation of young people is unthinkable.
In Portugal, 7 out of 10 children under 35 years of age have a net monthly salary of 950 euros
In addition, according to this study, when asked to the Portuguese youths between 15 and 30 years old who currently reside in Portugal, a third believes that sooner or later the departure of emigration will affect them. They say that job offers are scarce, poor working conditions and the price of expensive housing, unattainable for most. Specifically, according to a survey conducted by the Francisco Manuel dos Santos Foundation, in 2020 72% of children under 35 gained less than 950 net euros per month.
Portugal has not returned to the economic crisis that the country suffered in 2008. According to some data, between 2008 and 2015, one million people left the country, mostly young, and many of them have not returned.
The population ages: Citizens over 65 are twice as old as those under 14. And in the age index of the world's population, Portugal ranks third among the oldest, behind Japan and Italy. For example, 100 young people under the age of 16, in Hego Euskal Herria there are 170 people over 65.
Portugal: Tax incentives for young people?
The Luso Government has defined it as a “drama”, and the day that the budget proposal has been presented for next year has announced its intention to “reverse the situation”. In particular, the centre-right government wanted to implement a number of fiscal measures and has called for support from the Socialists for the approval of Parliament. “Agreement or elections.” The President of the Government, Marcelo Rebelo de Sousa, has clearly stated to the Executive: "Either the budgets are approved or they are going to the elections," he added.
The most important proposal is to adapt the Personal Income Tax to young people, provided that the following three requirements are met: Be less than 35 years old, earn less than 28,000 a year and earn up to a maximum of ten years.
All young people who earn less than EUR 28,000 per year during the first year of paid work would be exempt from IRPF. Then yes, they would enter into this obligation to make the income declaration, earning less than 28,000 euros: from the second to the fourth year that they meet these requirements, they would have a deduction of 75%; from the fifth to the seventh to 50%; and from the eighth to the tenth, 25%.
Companies would also benefit from improvements: Corporate Tax, for its part, would be reduced from the current 21% to 20%.
Basque Country: More help to emancipate, for what?
On Monday, the president of the Spanish Government, Pedro Sánchez, presented the "Rental Bonus": A program of 200 million euros to "alleviate the problem of housing" in the Basque Country. The day before, tens of thousands of people took to the streets of Madrid to show that access to housing is becoming more and more complicated.
The age limit for Spaniards and Spaniards still needs to be specified and it needs to be seen whether EUR 200, EUR 250 or the amount. In the Spanish press, the dance of these two figures appears. Moreover, it remains to be determined whether the aid from the Spanish Government will be compatible with the aid from the Basque Government and the aid from the Government of Navarra in the field of rental and emancipation.
However, it does not seem that the solution will come along that way either in the Spanish State or in the Southern Basque Country, because it has been clearly seen what the owners have done when the communities have put in place this type of aid: raising the rent. If the rent price is not limited, tenants will have the option again.
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