The expense to inflation, the taxes at half

Between 2023 and 2026, state spending, excluding interest and investments, is set to rise significantly, outpacing inflation. The proposed 2027 budget increases spending by 5.4 billion euros, while inflation is projected at 2.5%. If spending were to grow only with inflation, it could allow for substantial tax reductions. The proposal suggests maintaining real spending levels, which could lead to a decrease in tax rates for both IRS and IRC. Historical data indicates that previous governments have managed to control spending effectively. The plan emphasizes that a growing economy can sustain lower taxes while still supporting public finances. The suggested reforms include eliminating temporary taxes and establishing a flat IRC rate of 15%. Additionally, a single IRS rate of 25% is proposed, benefiting workers rather than wealth holders. The overall aim is to stimulate economic growth and improve fiscal sustainability without compromising essential services.