Tax Reform

One of the most consequential developments of the 20th century — in Portugal as in most Western countries — was the emergence and consolidation of the welfare state, including social security systems and the public provision of services such as education and healthcare.

The context in which the welfare state was originally designed differs markedly from today’s environment along several critical dimensions.

• The demographic structure is quite different: life expectancy is much higher, whereas birth rates are much lower.
• Economies are considerably more open, not only in terms of the trade of goods and services but also in terms of capital and labor movements.
• Portugal, in particular, has witnessed significant migratory movements, both from and to the country.
• The level of economic development, as well as the relation between the economy and the welfare state, are quite different.

Reform of the tax and social security systems is increasingly necessary — if not urgent. NPPI seeks to contribute constructively to this debate by developing rigorous, evidence-based public policy proposals that promote long-term social sustainability.