Home Top Stories The government is trying to incorporate ERC, Bildu and Podemos into “taxes”...

The government is trying to incorporate ERC, Bildu and Podemos into “taxes” on health, capital income and the banking sector

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The government is trying to incorporate ERC, Bildu and Podemos into “taxes” on health, capital income and the banking sector

The Government still does not have the necessary support to carry out the desired tax reform. This Monday, the PSOE obtained the Sumar’s surrender regarding the removal of the tax on energy companies in exchange for new taxes on private healthcare and luxury goods, but this was not enough. THE strong opposition from the ERCwith other forces like Bildu and Podemos, complicates Pedro Sánchez’s plans.

Barely two weeks ago, the PSOE presented a battery of amendments agreed with Junts and the PNV. Among them was the creation of a new bank taxbut not for energy companies, so the extraordinary taxation of these companies would decrease with the temporary tax. Faced with this, all the left-wing partners of the socialists, including those of Yolanda Díaz, raised their voices.

For Sumar, Bildu, ERC and Podemos, the bank tax was insufficient and they rejected the abolition of corporate tax. Today, the socialists and Sumar have reached an agreement in principle, but the figures are still not concrete. The PSOE, aware of the difficulty of parliamentary calculation – even more so on such a delicate issue – wants to reach a global agreement. But the puzzle is devilishly complex.

Sources on Pedro Sánchez’s side explain that what they have with Sumar is not a closed agreement, since they must present it to ERC and Bildu to have a chance of moving forward. Furthermore, they add that They agreed on principles, but did not draft amendments.what they did with Junts and PNV.

So things are, The government has no choice but to continue negotiations. The Finance Commission of the Congress of Deputies should have been held this Monday, but the lack of agreement precipitated its postponement to Thursday a few minutes before its start and at the same time as Sumar broadcast the agreement with the socialists.

The Republicans have scored the goal of said report. “ERC had informed the PSOE of its vote against of this bill. Any measure aimed at favoring banks and electricity companies will not find our support. The PSOE must negotiate again,” he said. Pilar Vallugeramember of the Catalan group.

Late in the afternoon, Pictures issued a statement calling for “restarting negotiations” to reach an agreement that overcomes the current blockade and maintains taxes on energy companies and banks. “There is no reason to eliminate taxes and that these large companies stop contributing to public coffers,” stressed the Basques.

So, in the best case scenario, The Executive would only have equalized the votes of the two parties of the government coalition and those of the PNV and Junts. But even this extreme is not certain. Taxes on private health care, luxury goods and capital income have convinced those of Yolanda Díaz, but they may not please two parties located to the right of the parliamentary arc.

In any case, this would only be the beginning of squaring the circle what Sánchez must do a tax reform on which the fifth payment of European funds depends. We would then have to convince Bildu, ERC and Podemos to accept the removal of the tax on energy companies. Sumar, harassed by Errejon affairhas already given up.

Increase in capital income

In Spain, capital income – income from investments – are subject to personal income tax in installmentsaccording to the following diagram:

— Up to 6,000 euros: 19%
— Between 6,000.01 and 50,000 euros: 21%
— Between 50,000.01 and 200,000 euros: 23%
— Between 200,000.01 and 300,000 euros: 27%
— From 300,000.01 euros: 28%

The agreement between the PSOE and Sumar would increase the taxation of the last tranche to 30%which makes Spain one of the European countries that taxes this type of income the most.

According to a recent report from Tax FoundationSpain taxes capital income ten points above the EU average. In comparison, countries like Germany (26.375%) and Italy (26%) apply fixed rates, and France imposes a high rate. flat tax by 30%.

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