• Approach: We can ask for more spending, more taxes and zero cuts

  • Profile.Nacho Álvarez, the last pawn of Pablo Iglesias to save the influence of Podemos

  • Negotiation.We can no longer veto Citizens if the Budgets are agreed before in the Government

The tax reform, the increase in taxes, is one of the great stones in the path of negotiating Budgets.

United We can defend an upward revision of rates for next year, taking advantage of the Government pact, while the PSOE is in favor of postponing it for a year - a vision shared by Cs, a partner sought by the socialists.

However, in full dialogue between Podemos and PSOE to achieve a draft that reflects the Government's proposal, the purple ones soften their position and agree to "graduate" that tax reform.

The demands of Podemos not to deviate one millimeter from the Government pact seem to be beginning to give way.

"The Government pact proposes a fiscal reform, but in a context of pandemic it is possible to graduate this agreement," said Nacho Álvarez,

Secretary of State for Social Rights

, and right-hand man of Pablo Iglesias in charge of negotiating the Budgets.

The purple formation is committed to public accounts with a large investment of public money, and they consider that this would be guaranteed by the European funds that Spain will receive (140,000 million).

This flow of money makes Podemos contain its claims, which de facto would imply relaxing the positions faced with other possible partners such as Ciudadanos.

"At the moment, the new public politicians are financed by European funds and the Spanish public sector has the capacity to issue debt, which is being backed by the

European Central Bank

," Álvarez explained.

We can accept, therefore, "graduate" the tax reform "in order to have the most expansive budget possible."

The formation of

Pablo Iglesias

regulates his pressure, but does not remove it completely from the table.

His demand for tax pressure on large companies and assets is still on the horizon.

"The economic context invites a certain graduation, which does not mean that we must take firm and clear steps for a fiscal distribution."

In this sense, Álvarez has appealed to the recent OECD report in which he asks to raise taxes on wealth, capital and create other 'green' taxes to pay for the recovery.

The possible formula, for the

OECD

, is to raise the taxes on patrimony or capital income.

"Strengthen the taxation of capital income and the capacity to collect on large assets," says the economic head of Podemos.

That is, it is the large incomes and large assets that "guarantee public policies in the medium term."

The government pact signed between the PSOE and United We Can includes a minimum taxation of 15% for large corporations, which would be extended to 18% for financial entities and hydrocarbon companies;

as well as increasing the tax rates on the general base by two points for taxpayers who have income above 130,000 euros and four points for the part that exceeds 300,000 euros.

As for the state rate on capital income, it will be increased by 4 percentage points for such income above 140,000 euros.

The text also plans to study "the taxation of large fortunes in order to contribute to a fairer and more progressive tax system."

According to the criteria of The Trust Project

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