The NIPE Researcher states that “By providing for an update of the personal income tax brackets of 5.1%, what is being done is precisely to neutralize the effect of the inflation expected for next year” and analyses the update of the personal income tax brackets and the reduction of the marginal rate of the second tax bracket of the same tax, concluding that it will simultaneously represent an increase and a reduction of personal income tax, i.e., according to Luís Aguiar-Conraria, “those earning around 1,500 euros per month (14 months per year) will see their personal income tax bill fall. Those earning more than this will have their IRS bill increased”.
In addition, an analysis is made of the impact of the update on civil servants and concludes that those who benefit from this update are mainly companies.
Finally, it considers that the reduction of public debt is something positive that should give some comfort and security to the Government’s accounts in case the economic situation of families in 2023 requires extraordinary support measures.
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