• Economy The Government opens the door to eliminate reduced VAT rates

  • Politics Moncloa raises two years of open confrontation with Madrid

Progressive taxation is one of the coalition government's commitments. This is how the Executive defends it, both in Spain and in Europe and the rest of the world. Avoiding "downward competition" in taxation is one of the goals set by Pedro Sánchez in his speech at the inauguration of the IV CEAPI Ibero-American Congress (Alianza por Iberoamérica Business Council). Within the country, the focus is on Madrid, as Moncloa is committed to fiscal harmonization. In Europe and the rest of the world in "tax havens" that benefit, above all, the large technology multinationals.

"There is no social justice if there is no fiscal justice," said the Prime Minister. "Progressive taxes are essential to maintain public services such as health or education." In his presentation, he warned of the danger posed to the economies of the countries by "fiscal dumping on a global scale".

Sánchez has wielded before a capacity with businessmen that these practices suppose a reduction of income for the states and, therefore, a decrease in the public money available to allocate to public services. "We must put an end to tax havens and downward competition from global taxation, which has deprived governments of the revenues necessary to finance investments that have proven fundamental in health emergencies such as the ones we are seeing, such as services. of social protection and the national health system in our case ".

In this sense, he demanded "to avoid that the exit from the crisis builds on a greater share of inequality, which we will inevitably suffer as a consequence of the nature of this crisis, but which we do not have to take for granted and not make structural because , if not, the greater inequality, the less connection to citizenship, the greater political instability and, consequently, a prompt emergence of new crises throughout the planet. "

The Recovery Plan sent to Brussels, so that Spain can receive 140,000 million of European funds, includes the adaptation of the tax system to the digital economy, with the 'Google' and 'Tobin' rates, as well as the promotion of the new 'green' taxation or the measures to combat fraud that the Executive expects to "come into force in the coming months."

In total, tax revenues will increase by 7.6% this year, to reach 275,243 million euros, a figure that remains at the gates of the year 2019 (277,483 million euros). In the case of personal income tax, the Government foresees that it will grow by 5.9%, going from 98,888 million in 2020 to 104,709 million in 2021, also thanks to the measures implemented to guarantee the income of families and the self-employed; While the Corporation Tax will increase by 13.9%, to 25,177 million, due to the improvement in business profits and the lower returns compared to 2020.

Likewise, the Government wants to undertake a fiscal harmonization in Spain.

They consider, for example, that the Community of Madrid exerts a kind of fiscal dumping and that is why the Treasury guarantees to harmonize with ranges "basically Heritage, Successions and Donations" to avoid relocations and the "headquarters effect".

According to the criteria of The Trust Project

Know more

  • Spain

  • Europe

  • Pedro Sanchez

  • Madrid

  • Madrid's community

  • Personal income tax

  • Google

VenezuelaJuan Guaidó: "Zapatero tries to whitewash the dictatorship"

TurismoEspaña will present the Covid passport next Friday at Fitur

Economy Sánchez criticizes in Porto the dismissals in companies with "six-figure salaries"

See links of interest

  • Work calendar

  • Home THE WORLD TODAY

  • Fiorentina - Napoli

  • Crystal Palace - Aston Villa

  • Sabadell - Tenerife

  • MotoGP: French Grand Prix, live

  • The outcome of the League, live: Atlético - Osasuna