The Pirate Party has accused the government of concealing the true cost of the latest tripartite package, adding another billion euros to the next budget, according to Clement.
The MP said his party had calculated that the agreed energy measures, compensation for the index and additional tax relief would come to around a billion euros in 2024, compared to 680 million euros this year. The party said this would mean the government was living beyond its means.
Although the Pirate Party said they were not opposed to giving citizens handouts, measures needed to be fair, sensible and effective - qualities they do not attribute to the current tripartite solidarity package. Single parents would once again be disadvantaged by the measures when compared to married couples.
The party added that the partial adjustment of the tax scale had come too late, and even the 6.25% relief was not sufficient to rebalance the 23.75% increase since 2009. In addition, the increase in the amount for reducing debt interest would not kick in until next year at the earliest, following the submission of 2023 tax returns.
The Pirate Party presented alternative measures which could still help households this year, in the form of direct support. According to their proposal, a person earning minimum wage would receive a one-time payment of €1,500. The payment would be adjusted depending on a person’s income, with higher earners receiving less support. Households would be eligible to receive €500 per child.
The cost of this proposal was not fully clear, although the party’s simulations calculated their plans would amount to 500-550 million euros. Clement said the whole plan could feasibly be financed with public money.
In the long term, the Pirate Party hopes to prioritise a full tax reform, adjusting tax scales and introducing fair tax classes, as well as abolishing class 1A.
A rundown of the latest tripartite measures (07.03.23)
‘Solidarity Pact 3.0' - How much will you save in taxes?
