Rui Rio defends reduction of the "investment-oriented" tax burden – The Economic Journal

The president of the Social Democratic Party (PSD), Rui Rio, defended Wednesday a reduction of the tax burden, through an "investment-oriented" management. Rui Rio believes that it is necessary to have a less complex tax legislation and to think more about companies, emphasizing that private consumption "is not a motor of growth".

"We have a fiscal burden that is brutality and has already passed the red line. Someone who wants to be serious knows perfectly well that it is not with a snap of fingers that it reduces the tax burden just because one wants to. It is evil to have arrived where it arrived. Now it takes time to bring things to the right level, "said Rui Rio, at a debate-lunch at The American Club of Lisbon at the Sheraton hotel in Lisbon.

Rui Rio argued that in order to have a real reduction of the tax burden "we must manage the tax burden in an investment-oriented way." The creation of tax legislation less complex and to think more about companies, especially small and medium enterprises (SMEs) is, according to Rui Rio, an added value, along with improving the relationship of SMEs with the Tax Authority itself. "There can be an enemy and an obstacle to investment," he explained.

The president of the PSD said that the country needs to be able to reduce the debt ratio and, if possible, the debt itself, and also reduce external debt, which "can only be achieved with exports and investment" and not with consumption private.

"Private consumption is not the engine of growth. Private consumption is what we want, what we want as a result. When we put the engine of growth consumption, without production to support, we will have the same as the governments of the past. This has to be very clear, "said the Social Democrat president.

Rui Rio also accused the Socialist Party (PS) of doing nothing to have better jobs and salaries. "The government would be lying if it said it would bring more jobs and better wages. How much they could say that they will begin to do so that in a future thereafter can do, but in the immediate did not do. Unless it leaves the country a euromillions any, "he joked.

"We can only give what is actually compatible to give up not with the present, but with the future. This is the big difference. [do PSD] given the governance we have. The Government gives what is compatible to give in the present or gave what was incompatible, gave what it had and did not have. They give all they have. And we have to give what we have for the present and for the future. It is necessary for the future in the first place and not the elections, "defended Rui Rio.

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