2300 euros income is really “for rich”

Minister Miguel Pinto Luz phrase Originates analyzes: new contracts are just over half and only 6% gain at the “middle class” level.

The phrase was said last week by Miguel Pinto LuzMinister of Infrastructure and Housing: “This is not lace for rich. Only in Portugal does a household that earns 5,750 euros per month, between husband and wife, is considered rich. This is middle classand the middle class also needs help.

Context: The minister was explaining government measures against the housing crisis – namely deduction in the IRS – and said that 2,300 euros are the threshold of what is considered a “moderate income” by the government.

“Only in Portugal” a couple whose salaries can pay an income of 2,300 euros is considered “rich,” he said.

Moderate?

But an income of 2,300 euros in Portugal will be just for “rich”.

The accounts, based on the National Institute of Statistics, show that the medium value of the new lease agreements, at most, to the 1.242 euros.

This in the municipalities with the most inhabitants. In none of them median income is located at 2,300 euros. The maximum threshold is just over half of this “moderate income threshold” announced by the minister.

Even the four municipalities with the most inhabitants – Lisbon, Sintra, Vila Nova de Gaia and Porto – last year had a median income to be round, or Below, of the 1,200 eurosin the new contracts.

Already looked at it to other accounts: taking into account the effort rate of 40% of its income, Less than 6% of the Portuguese receive enough (gross salary of 5,750 euros) to pay an income of 2,300 euros.

Lace (still) higher?

The benefit fiscal announced by the government will thus cover lace of, not maximum, 2.300 euros.

And that can increase the value of income“Our fear is that the lace, whose values ​​are already very high in themselves, can rise even more,” says Sofia Lima of Deco Proteste at SIC Notícias.

In Express, economist João Pereira dos Santos reinforces the idea: “When we put these limits on such a high ceiling, this can also create inflationary pressure to increase, because people know that they can go to a certain extent that they still benefit from tax incentives. It is an incentive to increase offering in a cross -sectional way.”

Minister explains

The Housing Minister said on Tuesday, in Parliament, that It did not decreed “that lace in Portugal from now on will be 2,300 euros”emphasizing that all the lower income benefits are maintained.

The measure announced by the government that creates a “moderate value income”, up to 2,300 euros, warmed the debate on the Parliamentary Commission of Infrastructure, Mobility and Housing, with criticism of the left and right questions.

“We have not decreed that the rent in Portugal from now on will be 2,300 euros,” said the Minister of Infrastructure and Housing, Miguel Pinto Luz, in the regimental hearing in the Assembly of the Republic.

“We didn’t end the benefits,” he said, stressing that the Affordable Lease Program (PAA) remains in the same way.

“The name is over [renda acessível]but the benefits are not over ”reaffirmed.

Pinto Luz also clarified that “in the regions of greater pressure, it is understood Lisbon, Porto, Cascais, Oeiras”, the government will be “Absolutely fair” from the social point of view.

“We are not doing these benefits for luxuryWe are not doing these benefits to the last percentile, we are not doing these benefits for the last hip, ”he said.

“We are doing these benefits to the middle class”recognized. And, anticipating that they would question him about what middle class has the possibility of spending 2,300 on home income, he added: “I do not want to live in this country where we continue to say that five thousand euros per month of family and wife’s household aggregate are rich. They are not rich. And we also do policies for them. We do policies for all.”

With the adoption of “moderate income”, the government wanted to “simplify” because “in the area of ​​housing no one is understood,” noted the minister.