Greek Elections 2023: PASOK candidate speaks of maintaining direct taxes

Following the fierce pre-election conflict that has erupted between New Democracy and PASOK over tax policy, come the statements of PASOK’s candidate for parliament, Stefanos Parastatidis, who in an interview spoke in favor of maintaining direct taxes, such as the ENFIA property tax.

He characteristically stated: “we must change the discourse of direct and indirect taxes, because they affect the middle class and low incomes”.

When asked if PASOK will maintain the ENFIA property tax, he replied: “Of course, they must be strengthened in order to redistribute and what must be done is to reduce indirect taxes.”

“The direct taxes that concern the parental inheritance tax, the real estate tax, this is ENFIA, are taxes that essentially concern the owners, these are taxes that should be withheld, and the taxes that should be reduced are indirect taxes”, concluded the PASOK MP candidate speaking on Open channel, provoking the reaction of his interlocutors on the panel.

Then, with his post on Facebook, Mr. Parastatidis went on to clarify, explaining that PASOK’s position “is to reduce the unacceptably high tax-free limit for parental benefits from the 4.8 million euros, which currently applies at the maximum price, to 400,000 euros for each parent.

PASOK’s position on the Real Estate Tax is to rationalize it (to make it fairer for the weak) and not to abolish it, as at least SYRIZA invoked, because this constitutes populism and does not work financially.”

His post in detail

The problem in the country is that we discuss every issue in demagogic terms, as for example in the tax issue we talk about taxes and not tax policy. Taxes are a state’s most important tool for wealth redistribution and social justice.

There are two main progressive-maintenance differences: horizontal vs progressive taxation and direct vs indirect taxes.

The policy of New Democracy concerns horizontal taxation of dividends, whether someone has profits of 40,000 euros or 40 million euros, while at the same time it cannot in this way reduce the tax burden on salaried work, increase tax exemptions for families, shield the social state, to strengthen education and health, public infrastructure.

According to the OECD report, “Greece has one of the lowest dividend rates among OECD countries, and a potential increase could lead to a reduction in the burden on the middle class.” As well as even Biden’s America is moving in a similar direction.

In terms of the direct/indirect tax relationship, estate tax, parental benefit-inheritance tax are left-handed taxes. Accordingly, indirect taxes are taxes that affect middle and low incomes. Requested to change the ratio of direct/indirect taxes in favor of the many.

PASOK’s position is to reduce the unacceptably high tax-free limit for parental benefits from the 4.8 million euros, currently in effect, to 400,000 euros for each parent.

PASOK’s position on the Real Estate Tax is to rationalize it (to make it fairer for the weak) and not to abolish it, as at least SYRIZA invoked, because this constitutes populism and does not work financially.
What we are proposing is a cut in taxes on wage labor, tax breaks for families with children, and a cut in indirect taxes on consumer staples and energy, while accuracy lasts.

We should change the tax model in which the few profit at the expense of the middle class and the lower economic strata. And not to give everything to everyone.

The PASOK press office also issued a related announcement stating that nowhere in the party’s program is there an increase in ENFIA, and that the party’s position is its progressive reduction with priority given to the weakest Greeks and the middle class.

PASOK’s announcement

PASOK – Movement for Change nowhere in its program talks about an increase in the ENFIA.

Our position is its progressive reduction.

With priority the protection of the weakest Greeks and the middle class.
As we propose for taxes, which mainly affect the middle class and the vulnerable, such as the reduction of indirect taxes, the reduction of taxes on salaried work and the reduction of taxes on families with children.

Against New Democracy’s and SYRIZA’s tax policies

The conflict between Nw Democracy and PASOK has been focused on the issue of tax policy for the last 24 hours, after the statements of Mrs. Chronopoulos about tax increases and the statements of the candidate, Panagiotis Doudonis, that his party will proceed with taxation of 15% of company dividends from 100,000 euros and above.

Nikos Androulakis yesterday from Chios emphasized that PASOK’s proposals for taxation, such as for dividend payers, are in favor of the middle class, while the press representative of ND and former minister, Akis Skertsos, emphasized that Harilaou Trikoupi has three new candidates in her program taxes, resulting in increased taxation on dividends, businesses and parental benefits.