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Original Message
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The Economic Daily promotes petition against worsening of taxes than those already agreed in the memorandum of the 'troika' and calls for civil society participation in this discussion.
Read and sign the petition No to more taxes
Portugal was forced to seek external assistance to the International Monetary Fund (IMF), the European Central Bank (ECB) and European Commission (EC) on April 6, 2011, when international lenders stopped believing in the ability to pay Portugal their debts and domestic banks reached the limits of its ability to replace the funding of the state itself.
Portugal was experiencing a political crisis after the president and leader of Opposition PSD, Pedro Passos Coelho, he voted against a new Stability and Growth Plan, the PEC IV, which contained more austerity plan and a worsening of the taxes, because the previous had failed successive planes. The Government was so outgoing and conditions of access to finance Portugal decayed daily.
On the verge of bankruptcy, the interest of Portuguese bonds had reached an unbearable amount. And, on the 6th of April, the Finance Minister Teixeira dos Santos, convey publicly that Portugal has to ask for outside help. That night, José Sócrates gave way before the facts before the consequences of a fiscal policy that failed in 2010 and was failing in 2011, and makes a statement to the country, an hour of television news, and announced that it had sent that same day, a request for financial assistance to the European Commission.
It was the beginning of a negotiation process that ended with the memorandum of understanding negotiated with the 'troika' and an adjustment plan violent but necessary to ensure the correction of imbalances, the fiscal deficit and external deficit, and access to a line of financing of 78 billion euros. And the expected return to a normal functioning and financing of the state and its economy from September 2013.
The Portuguese were then faced with increases in all taxes, direct and indirect, to support the reduction of the public deficit. First, as early as 2011, with a surcharge on the IRS, which reached 50% of the Christmas bonus and then with a state budget for 2012 that proved a seizure. The increase in VAT, the end of the tax deductions for the last two steps of IRS and reducing ceilings for the other levels, worsening of excise taxes, revision of taxes on estates, taxation of capital gains in exchange, the creation of a single rate of IRC, finally, an increase in overall tax burden for businesses and families. The tax burden on the Portuguese reached a record in 2011, 35.9% of Gross Domestic Product (GDP).
Simultaneously, the government decides to cut subsidies and Christmas holiday for civil servants and all workers in the corporate sector of the State during the term of the agreement with the 'troika', a measure cutting state expenditure - in practice it is an aggravation tax - which would save the time needed to reform a state heavy and it consumed in 2011, according to figures from the very 'troika', 48.6% of Gross Domestic Product (GDP), the second highest level the last decade.
Pedro Passos Coelho took on itself the responsibility and gave the guy for tough measures, contrary to those who promised in the election campaign. It was a necessary evil to change lives, and we must recognize it, accompanied by a set of measures on the expenditure side, in areas such as health, education, transport, who have set also cuts in structural areas of the state resistant and weighing in public spending.
The shock therapy, scheduled to be implemented in three years, the financial adjustment necessary to permit correction of imbalances was accompanied by a set of relevant measures in areas such as labor code, law or lease competition, measures that it is hoped, will produce positive effects on the economy in the medium and long term.
At the same time, tax increases and cuts in temporary spending should have been accompanied by a reform of the public sector, then in 2012, to identify the areas and functions that must be guaranteed by the state. The memorandum agreed with the 'troika' was, and is, necessary framework, economic, political and social reform to achieve a promised two decades ago and that does not leave the paper.
The evidence that the Government will fail to meet the objectives of reducing the deficit in 2012 to a value of 4.5% of GDP, as agreed with the 'troika', has returned a discussion that should have been closed, the good of the country, and its future: will take more tax increases, additional to those already planned and that have been announced, to accomplish the goals for which the country is committed in 2013?
In this context, the Economic Daily intends to promote a public petition, a phase of political and economic discussion and decision on the State Budget for 2013, against a new tax increase.
The Economic Daily understands that economic developments in 2012 and the significant drop in tax revenue in this budget show that the country has reached the maximum level of tax burden, and, from this level, the choice of more taxes to ensure a reduction of the public deficit can only have perverse consequences, and sink the economy and the country in a recessive spiral as seen in Greece, another state operated upon.
The Economic Daily believes that a new tax increase will be an incentive to economy, which must be fought relentlessly, but also a drop in business activity and consumption unparalleled.
The Economic Daily believes that the Government must ensure the reduction of the public deficit, a factor absolutely necessary to free the economy through effective and sustained reduction of public expenditure, without artifice or other temporary measures.
The Economic Daily understands that, if necessary, and to avoid a new tax increases, the government has to negotiate with the 'troika' a revised timetable adjustment, to ensure fairness in austerity for other states that are under formal intervention informal or 'troika', until the light of new instruments and mechanisms of action announced on September 6 by the ECB and anticipating a new European framework to support the euro and monetary stability of the single currency area.
The Economic Daily calls for participation of the Portuguese, civil society, this discussion and signing of petition against a new tax increases that crushes the private economy, families and businesses.
The Economic Daily undertakes to promote this debate and take the signatures of this petition to parliament for discussion with the different parliamentary groups.
Read and sign the petition No to more taxes
[link to economico.sapo.pt]
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