PORTUGAL: Political party PAN meets with local Lisbon Basic Income activist group

Francisco Guerreiro at ISCTE, Lisboa

Francisco Guerreiro at ISCTE, Lisboa

 

Francisco Guerreiro is one of the active members in Portuguese political party PAN’s (Pessoas-Animais-Natureza) national political commission. He, among others in PAN, defend Basic Income as a crucial transitional social policy to a better society, where basic needs are assured for all citizens. PAN is presently preparing the upcoming national elections, and will continue to support a Basic Income implementation, as it did in the past European Elections.

 

In order to deepen PAN’s knowledge about Basic Income, collect data and widen their supporters network, Francisco has visited Lisbon’s Basic Income activist group, at a meeting which took place at professor António Dores office, at ISCTE (Instituto Universitário de Lisboa). In this informal meeting, a mild but productive discussion took place, at the end of which Francisco Guerreiro recorded a short video. Agreeing on the essential (aspects of Basic Income), these activists acknowledge that the greatest challenge at the moment is how to communicate the Basic Income concept and potential implications to a wider audience.

 

More information at:

Language: Portuguese

PAN, “European Political Program 2014 [Programa Político Europeias 2014]“, PAN’s Website 2015

Language: Portuguese

RBI-Portugal official website: https://www.rendimentobasico.pt/

Miguel Horta, “Negative Income Tax in Portugal [Negative Income Tax em Portugal]”

Red Renta Basica. Article "Negative Income Tax em Portugal"

Red Renta Basica. Article “Negative Income Tax em Portugal”

 

Abtract:”The NIT – Negative Income Tax – is a wealth redistribution system. It works through a tax which reaches for a part of the richest population wealth and distributes it through all others, in an automatic and unconditional fashion. This means no questions asked and no job seeking requirement, but also without introducing a disincentive to work.

 

This study is a simulation over such a tax in Portugal, in its present day conditions. This tax would be the actual labor tax with some changes. From the simulation with labor tax working this way in a “closed circuit” and a 50% tax on each citizen’s income over 7000 €, it would be possible to guarantee to all adult Portuguese citizens a monthly income of at least 300 €.

 

Comparing to present day values, this simulated tax represents an increased taxation on the highest incomes. But this tax can be set at any other level, which conditions how much redistribution will occur.

 

NIT will turn several State social benefits obsolete. Eliminating these programs will relieve public spending by an amount around 70% of what is presently collected with labor tax. Furthermore, the NIT challenges present day public programs for employment and support in unemployment. These programs are based upon the idea that jobs are the source of income for citizens, which means that if those incomes can be guaranteed by other means, then the former can be eliminated, total or partially. This can save public treasury up to more than present day labor tax collection.

 

The NIT is also associated with solidarity and social cohesion, which naturally will clash with maintaining large incomes and pensions for a minority, as it supports dignified income for all as a human right. This can lead to ceiling caps on pensions, which will liberate even more public funds.

 

Finally, NIT will reduce poverty and, proportionally, its weight on public funds, in terms of health costs, security costs, among others.

 

Miguel Horta (2015), “Negative Income Tax in Portugal [Negative Income Tax em Portugal]“, Red Renta Básica, April 24 2015

PORTUGAL: Basic Income public discussions on the rise in Portugal

Francisco Louçã. Credit to: DN Portugal

Francisco Louçã. Credit to: DN Portugal

On the 7th of February, Francisco Louçã, a long time left-wing public figure in Portuguese politics, wrote an article named “How to pull the PS policial party to something civic [De como puxar o PS para qualquer coisa de cívico]“. This extensive article deals with many political aspects and analysis, but at a certain point cuts a clear criticism on the fact that the political party LIVRE has inserted (a reference to) Basic Income on its draft political program for the upcoming elections. The arguments being that LIVRE has not detailed a way to finance Basic Income, and that this unconditional income should not be given to rich people, since they clearly do not need it.

This first article was extensively commented on the website where it was published, the Público newspaper blog “Tudo Menos Economia [Everything But Economy]”, where Francisco Louçã regularly writes. Comments came from Basic Income supporters (like Roberto Merrill, António Dores and Dario Ferreira from the Basic Income activist group in Portugal) and many others, arguing on moral terms and supplying some numbers which might cover Basic Income expenses for the Portuguese social reality, rejecting the idea that it might not be fundable.

Rendimento Básico Portugal group logo

Rendimento Básico Portugal group logo

The original critic by Francisco Louçã and this first round of discussions around Basic Income encouraged André Barata, a LIVRE militant to compose an answer to Louçã’s arguments. As a long time Basic Income defender and political activist, he framed Basic Income as a human right, alongside Education and Health, and so justified it as a guarantee for all citizens, independently of their present income. As for the necessary funding calculations, he argued that first a new idea has to stand on its own, then its defenders must think of ways to inspire public policy and then, finally, financing calculations must be performed.

André Barata. Credit to: iOnline

André Barata. Credit to: iOnline

Inspired by the flood of comments on his first article and André Barata’s response, Francisco Louçã published a second article titled Basic Income: how, how much and for whom [“Rendimento Básico Incondicional”: como, quanto e para quem], where he laments having been judged by Basic Income defenders but reinforces his opinion that financial practicability must be performed now, so that the Basic Income can gain, from his point of view, concrete credibility for action and not degenerate into an utopian illusion. He also reinforces his standpoint that it is fundamentally inacceptable to give a Basic Income to the wealthy, as well as to the poor, since he argues these are not the same and thus should not be treated equally. As for the financing effort itself, he further argues that the Basic Income bill would still be enormous, something around an extra 50 000 million €/year, which means an increase of 2.4 times the present taxation burden on work, although he concedes that other sources of income maybe at the State’s disposal (e.g.: taxation on fortunes, resource and pollution taxes, further curbing tax evasion). He concludes that it would be better to maintain the current system, albeit getting better at collecting taxes.

This second article generated a new flood of comments. The Basic Income public discussions in Portugal have finally started.

 

More information at:

André Coelho, “Portugal: Social movements and political party together for basic income“, BI News, February 2 2015

Language: Portuguese

Francisco Louçã, “How to pull the PS policial party to something civic [De como puxar o PS para qualquer coisa de cívico]“, Tudo Menos Economia (blog), February 6 2015

Language: Portuguese

André Barata, “An income for everyone – answer to Francisco Louçã’s arguments [Um rendimento para todos – resposta aos argumentos de Francisco Louçã]“, O Irrevogável (blog), March 5 2015

Language: Portuguese

Francisco Louçã, “Basic Income: how, how much and for whom [“Rendimento Básico Incondicional”: como, quanto e para quem]“, Tudo Menos Economia (blog), March 2 2015