4th October 2012
So, today I will not talk about my portfolio, but I will just say my mind about the economic policies of my country.
Portugal, just announced extra measures, that put the IRS for people earning over 153,000 euros at 54,5% (on top of that, you’ll pay 11% Social Security).
Well someone that gets paid 200,000 euros a year takes home 69,000 euros. (a family, not a single person; so lets assume it is a family with 1 kid in school).
From those you can take out 2000 euros that you pay for having a house on housing tax and 500 on car taxes. If you spend 3000 on gas a year, you’ll pay 2000 on petrol tax. Anything you buy (except for some very few basic goods) has a VAT of 23%. So lets say you spend around 30,000 on food, clothing and bills a year, so you pay here round 7,000 euros on VAT. Then you’ll get all kinds of extra taxes like municipal water tax, TV/electric bill tax, communications tax…lets say it round around 1,000 euros annually.
At the end of the year:
-Basic Salary 200,000
-Taxes = 131,000+2000+500+2000+7000+1000=143,500
-Net Salary = 56,500
-Basic Spending (petrol, home bills, food, school and insurances) = 24,000
-Net Salary-Basic Spending= 32,500
This means at the end of the year, a Portuguese family that is in the top 1% range of salaries has 32,500 left…(16,25% of the Income) and we are assuming that they aren’t on debt and dont have a mortgage on the house…ITS RIDICULOUS!!!!
Lets see this from someone in the mid salary cap, same situation family gets 20,000 a year (average in Portugal), they will pay around 14% in IRS and 11% on social security, leaving them with 15,000 euros.
From those they have to take also 750 housing tax, plus 250 car tax. They spend 2000 on gas a year, so they pay around 1300 in petrol taxes. Anything they buy (except for some very few basic goods) has a VAT of 23%. So lets say you spend around 10,000 of food, clothing and bills a year, so you pay here round 2,300 euros on VAT. Then you’ll get all kinds of extra taxes like municipal water tax, TV/electric bill tax, communications tax…lets say it round around 500 euros annually
At the end of the year:
-Basic Salary 20,000
-Taxes = 5,000+750+250+1300+2300+500=10,100
-Net Salary = 9,500
-Basic Spending (petrol, home bills, food, school and insurances) = 8,400
-Net Salary-Basic Spending= 1,100
This means at the end of the year, a Portuguese family that is in the 50% top range of salaries has 1,100 left…(5,5% of the Income) and we are assuming that they aren’t on debt…ITS RIDICULOUS!!!!
THIS COUNTRY IS A BUNCH OF IDIOTS THAT DON’T HAVE A CLUE!!!!
Now the portfolio and I'll be looking into SAP and EKF Diagnostics: