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Spain has been devastated by round after round
of tax hikes. Another one is on the way. Via Google-translate, please
consider this non-modified translation of government shuffles new tax increases to reduce the deficit
Never two without
three. The brutal tax increases approved by the Government of Mariano Rajoy in late 2011, increasing the income tax and the tax on savings , among other
figures, and the recent increase
launched last July, with
the increase in VAT , Taxes -special
rate you could add soon a new tax hike to reach
the deficit target of
6.3% of GDP set for this exercise.
This, with an eye on a country's total bailout, whose application could occur next September.
Before formalizing the request for assistance, the government
wants to make sure you are ready to meet the deficit target, and for that "is likely to take much more drastic measures they currently have," reveals a member of the Government, on Monday reported the newspaper El Pais.
Among these, it weighs a new tax increases and a freeze on state pensions.
"The evolution of expenditure,
with the cuts we have made, we have more or less clear, we
do not know is how the revenues are going to go," admitted to
the Government. In the first half
of the year things did not go well: overall, tax revenues fell by 3.5% annual rate, far from expected for 2012 (increase of 4.3% per year).
The Ministry of Finance will
report to the Executive on the development
of tax collection during
the summer months, and
"if revenues continue to fall, probably will have to return to
raise taxes and cut spending again, although here and can hardly play
more ", added the sources. Specifically,
in its editorial, the paper notes that Prisa Economy Minister Luis de Guindos, thinks "there is no room for further cuts in spending," which means that additional
adjustments would have to
come from the side of income.
Thus, the government may choose to remove the shelter deduction retroactively (about
6,000 million euros) or relief for contributions to private
pension plans (2,000 million); impose verd penny
and not only gas, but also to fuels; Excise reraise (alcohol, snuff ...) or implement new environmental
taxes, and more. It is not ruled
out anything.
Spain's economy minister
says "there is no room for further cuts in spending", a
position I believe is preposterous. However, my position does not matter.
What does matter is Spain is in an economic downward spiral and tax hikes will make
matters worse. Sadly that is
the primary option on the table.
Read more at http://globaleconomicanalysis.blogspot.be/2012/08/spain-predicts-43-increase-in-tax.html#FpJRKZUq2Ewu8yS5.99
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