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Budding tax reform with the argument that it is the way to strengthen the welfare state and that Spain collects much less than other countries with reference social policies. The Prime Minister, Pedro Sánchez, has considered this adjustment in the payment of taxes "inevitable" because our country is seven points below the European average. "We cannot have a public health system like the one we have, and the Nordic countries also have financing like we have. It is not sustainable."

"We are going to carry out a tax reform," he confirmed in La Sexta, but with "justice." The president has not clarified whether the reduced VAT will rise , which is imposed on restaurants or transport, although he has defended increasing taxes on large corporations and not on small and medium-sized companies. It has also opted to "accelerate" all the 'green' or environmental rates that the Government has already announced.

He did not want to refer to the tax on great fortunes, which United We Can now requires of him, because it does not figure, he recalled, in the coalition agreement. But he has assumed that no one "intellectually" can be against whoever else has to pay.

In his opinion, this alleged tax on the wealthy that Pablo Iglesias is championing "is still a fetish." What it is all about, the president explained, is "to fully enter where these assets are and we make them pay taxes." In this sense, it has also pointed to a reform of the wealth tax or an increase in the corporation tax for large companies that, in relation to their income, pay much less than SMEs or the self-employed.

In short, Sánchez explains that the Covid -19 pandemic has changed everything and that it did before it broke out, in conversations with the economic vice president Nadia Calviño and the Minister of Finance, María Jesús Montero, the objectives were to reduce debt and end the legislature with zero deficit. Now "the fiscal seams have jumped, we have to save lives and help people." A great budgetary effort has been made in the face of the health emergency and with the maintenance of companies and jobs, but he has indicated that it will be necessary to continue paying debt "We will have to increase the income capacities of the State, including personal income tax." The president recalled that he is already included in the agreement with Podemos in the highest sections and has argued that a tax reform with "tax justice" will be well understood because Spanish society wants health, education or dependency to be strengthened.

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  • Pedro Sánchez
  • Spain
  • Taxes

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