PRESIDENT Pedro Sánchez and his cabinet presented their 2019 budget today (Friday) in Parliament, although as yet they do not have sufficient support from non-ruling parties to push it through. Backing from left-wing...
Government debates raising tax bands for highest earners
SPAIN'S government is discussing increasing income tax for individuals who earn €150,000 or more per year, but stresses it has not come to any final decision as yet.
Treasury minister María Jesús Montero has been in talks with left-wing Unidos Podemos, who have long campaigned for higher tax rates for the top bands and for ultra-high net-worths.
Sra Montero insists that 'nothing has been agreed' as yet, only that she has been willing to enter into talks with those who advocate the move.
Podemos' organisation secretary Pablo Echenique argues Spain has 'a great deal of margin' for increasing taxes for the highest earners and major corporations compared with the rest of the European Union, and says the country's wealthiest should be made to 'contribute with greater generosity to the welfare State'.
“It doesn't make sense that someone who earns €60,000 a year pays the same percentage in income tax as another person who earns €120,000,” Echenique says.
“It's only common sense, and we're hoping we can reach an agreement on this issue.”
United Left, the other party in the Unidos Podemos coalition, wants to see tax bands rise for any individual earning over €60,000.
Head of economy policy for United Left, Carlos Sánchez Mato, says both María Jesús Montero and the secretary of State for the treasury, Inés María Bardón, have both 'reacted favourably' to the idea.
Although Echenique says none of the parties to the debate have set a deadline for finalising talks, he hopes the negotiation will be complete before discussions about the State deficit reach Parliament.
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