The Government creates a tax for the rich that will collect 1,500 million and apply reductions of 746 euros in personal income tax for low incomes


The Minister of Finance, María Jesús Montero, has presented the tax measures agreed by the coalition government. It is a “joint proposal” that includes modifications to personal income tax, in companies and the creation of a new “solidarity” tax for assets of more than 3 million euros. With regard to this last figure, it is a new tribute that plans to collect 1,500 million euros per year. It will be in force in 2023 and 2024.

With regard to personal income tax, the Government approves a double change. On the one hand, the tax benefits for work income are extended, which until now benefited up to 18,000 euros and is extended to 21,000 euros. The Government assures that with this decision there will be a reduction of 746 euros for those who earn 18,000 euros. This will cost 1,881 million euros over two years. The minister has avoided comparisons with the deflation announced by several communities, since Montero assures that this is a “generalized” measure and this will benefit the 50% of workers who are paid the least. In addition, the exempt minimum is raised from 14,000 euros to 15,000 euros.

In the opposite direction, a change is approved for the personal income tax on capital income, increasing the tax on the returns of the highest income for their investments. The rate for income between 200,000 and 300,000 euros is raised from 26 to 27%. And a new scale is created above 300,000 euros, which rises to 28%.

Regarding the “solidarity” tax for large fortunes. The Government assures that it will be taxed in three scales. Between 3 and 5 million net wealth will pay 1.7%. Between 5 and 10 million, from 2.1% It will be 3.5% above 10 million.

The coalition government has been negotiating until this past morning the tax proposals with which the Executive intends to respond to the wave of tax cuts that have been applied in the communities. This morning an agreement was reached on fiscal matters, although the fringes remain for the budget agreement.

Andalusia, Galicia, Murcia or the Valencian Community are some of the communities that have announced tax reductions in recent days. However, the Government had responded so far by speaking more along the lines of increases for high incomes, and even a new tax for large fortunes. Despite this, in recent days it had already opened up to making certain selective tax reductions. International organizations are recommending governments to undertake a tax increase for the richest and companies to improve collection and progressivity.


Source: elDiario.es – elDiario.es by www.eldiario.es.

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