To be fair, Portugal has some of the highest taxes in OECD, particularly on companies (for those who think this is like ‘Murica, where taxes can be so low, particularly in Red states, that public services and investments are terrible to non-existent). Combine this with the housing crisis, and it’s very difficult for young people to start their lives without family support. Yes, this also helps keep Portugal’s budget balance green (2nd quarter of 2024 had a record budget surplus of 1.3%) and reduce debt, but given a too rigid labor market, and also still being a EU funds net receiver, real wage growth barely surpasses the EU average (while wages are significantly below that average) and incentivizes emigration, so it’s not that impressive.
Portugal is definitely on the “should reduce taxes and create higher economic freedom that generates economic growth and more than compensates the lost revenue” side.
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To be fair, Portugal has some of the highest taxes in OECD, particularly on companies (for those who think this is like ‘Murica, where taxes can be so low, particularly in Red states, that public services and investments are terrible to non-existent). Combine this with the housing crisis, and it’s very difficult for young people to start their lives without family support. Yes, this also helps keep Portugal’s budget balance green (2nd quarter of 2024 had a record budget surplus of 1.3%) and reduce debt, but given a too rigid labor market, and also still being a EU funds net receiver, real wage growth barely surpasses the EU average (while wages are significantly below that average) and incentivizes emigration, so it’s not that impressive.
Portugal is definitely on the “should reduce taxes and create higher economic freedom that generates economic growth and more than compensates the lost revenue” side.