The Spanish tax system

19/02/2014 | Marta Crespo Fernández (Alumna UC)

A few days ago, I read a new newspaper. It said that the two most important Spanish political parties would like to change the tax system. Since the Spanish crisis started, people know that tax system is very fragile. Our tax model collects less money than other European tax models. The income tax in Spain is eight points lower compared to Europe. Moreover, tax fraud is very high.

The Spanish tax model allows for many deductions. One in five euros that the State should receive is deducted. For this reason, the Spanish government wants to reform the tax system. It is currently studying its options and will probably lower taxes in 2015.

On the one hand, the government believes that it has to make smaller sections of the income tax and decrease the number of exemptions. For businesses, it wants to eliminate tax breaks and lower the maximum rate of 30%.

Today, Manuel Lagares is one of the people who have to plan the measures that the government will take. Manuel Lagares wants to eliminate deductions. Also, he wants to increase the tax base and lower income taxes and corporate taxes.

On the other hand, the opposition party (Spanish Socialist Workers’ Party – PSOE) is going to present its own legislation beforehand. For instance, one of its measures is to lower taxes for lower income levels. The PSOE wants all taxpayers to pay taxes based on their real incomes. Currently, salaried workers with low and middle incomes are the people who contribute most.

For the moment, Spaniards will have to wait and see but most people agree that the tax model needs to be reformed because it favors some groups more than others.

Nota: Este artículo ha sido elaborado por Marta Crespo Fernández, alumna de la Universidad de Cantabria, como una de las actividades enmarcadas dentro del programa de capacitación lingüística, dando su permiso para la publicación del mismo en FxM.

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