Simplification of the Portuguese "county" map is aimed at reducing complexity (duh!), improving service to taxpayers, while reducing public expenses. The last time this was done was 200 years ago - so, yes, it is needed, and yes, it took too long. The challenge though is to balance this with the need to keep people in inland Portugal, where the low number of inhabitants, rugged landscape and low education levels might hamper service improvement efforts. But, let's wait and see!
Sunday, 30 September 2012
Friday, 28 September 2012
What's the tax limit a society wants?
So, how far should society provide services to tax payers? But also, a strong push for efficiency - if society demands inputs put it is not ready to increase its tax burdens, where will it cut or how will it be more efficient? An interesting debate - and not, by any chance, an academic one. It is a real and very present one, especially in Western societies.
Monday, 24 September 2012
2 words on the changes in the Social Contribution rate in Portugal
I am for the decrease on the Social Contribution rate (TSU) paid by the companies in Portugal. But I am against that decrease being funded by an increase on taxes on tax-payers. It needs to be funded through public expenses cuts. It is as simple as so.
Sunday, 23 September 2012
Exploiting the Prophet
This is the name of a great article in The NY Times, presenting a balanced picture on what all the mayhem that is going in the Muslim World, because of a "movie" that insults Mohammad. Believe me, it is worth reading it.
Putting the budget back on voters hands
Participating budgets (sorry, I am sure there is a better name for this) are on a rise in Portuguese cities, putting back a (small) part of those cities budgets on the hands of the voters. Though the amount is relativelly small (you can see it in the Cascais example I am linking this post to), it gives an empowering sensation to tax payers - and the possibility to head start projects that they feel important for their areas. Now... don't forget to take part on them!
Saturday, 22 September 2012
Next move
It really is good news that the Government has rejected the 7% plus rise on income taxes. Now, the next question is: what will it do to further finance the public deficit - I hope that it is a serious effort on the area of state expenses reduction, and I pray that doesn't need to be as violent as I usually say. But it needs to sustainably reduce the gap on state income vs expenses, while helping to relaunch the economy. Which is not an easy move - to understate the challenge...
Thursday, 20 September 2012
Cut Public Expense
It is really the only way forward. The current public structure (including state-owned companies) is clearly overburdening the economy - not only with taxes, but also with bureacracy and inefficiency. Portuguese tax payers (and economy) are clearly choking due to this heavy, out-dated machine. Cutting it strongly (including laying-off several dozens of thousands of workers) is unavoidable (as well as tackle down corruption). We need this to low taxes and to drive economic growth.
Summing it up: More taxes are not the solution, simplification of public administration is.
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