Politicians agree in recognizing a problem with the Spanish tax system (its low collection power), although they attribute it to different reasons and give different recipes.
Only the PP proposes a large and generalized reduction in taxes and only Podemos proposes raising personal income tax from 100,000 euros and bringing the rates on savings closer to those on work.
One week before the general elections that will make up the composition of the Congress of Deputies and the Senate, and in the end, the new Government, the economic spokespersons of the different formations that participate in these elections have already positioned themselves on those issues that will most affect to the pockets of the Spanish people, in relation to the tax system proposed by each of them.
The PP believes a generalized tax reduction is feasible
Thus, Daniel Lacalle, of the PP, affirms: "Spain collects less because we have more than double the unemployment rate and much smaller companies." In his opinion, to resolve the issue, we must "reduce unemployment and facilitate business growth." To achieve these intermediate objectives, he proposes lowering taxes and mentions those that weigh on savings. Pablo Casado has quantified the tax reduction of his program at 16,000 million, which is divided into the reduction of Personal Income Tax (to a maximum of less than 40 percent) and Companies (to place it below 20 percent) and the elimination of Inheritance, Donations and Heritage.
The PP is, among the main parties, the most ambitious in tax cuts. It is based on the disputed theory that lower taxes boost economic activity.
Regarding the self-employed, Pablo Casado's training wants them to be able to benefit from the flat rate for three years.
Citizens
Citizens without going to these extremes, do not give up tax reductions: one point in each income tax bracket.
On the other hand, it does not plan to lower the taxation of savings: it believes that its current level is adequate and competitive. It does not consider it appropriate to raise rates given the now low yield on savings nor to lower them, since the margin for improving income in this way is small. But it does raise the disappearance of Inheritances and Donations for those that occur between parents and children and between spouses.
Ciudadanos proposes a minimum cost of tax deductions for large and single-parent families of 4,500 million euros, proposing a deduction of 2,400 euros in personal income tax for families with more than two children and 1,200 euros for single-parent families or those with two children.
In addition, Ciudadanos wants to apply a discount on the 60% personal income tax for income generated in municipalities at risk of depopulation, and with respect to the self-employed, it proposes a reduction in the flat rate to 50 euros. For women and young people who live in municipalities with less than 5,000 inhabitants, it proposes a flat rate of 30 euros.
No to lower taxes, and yes to greater progressivity and the fight against fraud
Pedro Saura (PSOE) does not talk about lowering or raising taxes. Its objective is that the effective rates are closer to the real ones and, therefore, put an end to the gaps in collection by fighting against evasion, avoidance and fraud. Saura trusts the increase in public income to the improvement of the cycle situation. Although the socialist program does point to an additional effort by companies and high incomes to increase the progressivity of the system.
Saura points out the need to move towards 21st century taxation and demands the tax on technology, as well as the one devised by his Government on financial transactions. If Saura does not get wet when it comes to anticipating what the PSOE will do with the taxation of savings ("we must find a balance between the need for savings and the reduction of inequality, between the taxation of consumption and the taxation of savings" ), the program does propose improving equity between the taxation of capital income and labor income.
Unidas Podemos aims to raise 40,000 million more in 2022 at the expense of great fortunes
The only party that does not hide that to close Spain's income gap in relation to Europe (six points of GDP) taxes must be raised is Unidas Podemos, which proposes replacing Patrimony with a tax on large fortunes that would tax net assets. above one million euros and with 400,000 exempt when they correspond to the habitual residence with progressive rates that would start at 2 percent and end at 3.5 percent from assets of one hundred million. In personal income tax, it plans to increase the brackets starting at 100,000 euros, to reach a marginal 55 percent for incomes above 300,000 euros.
Likewise, Jorge Uxó, head of the list for the Congress of Deputies of this formation for Ciudad Real, affirms that the taxation of savings should be brought closer to that of the general rate and argues: «In incomes starting at 60,000 euros, those who "Those who earn from work pay twice as much as those who earn from capital income." Regarding Companies, remember the agreement with the PSOE on the application of a minimum rate of 15 percent which, according to its proposal, would be 20 percent for banks and hydrocarbon companies.
Thanks to these measures, Unidas Podemos aims to raise 40,000 million euros in 2022
Vox proposes a cut in public spending of 24,236 million euros
To do this, he proposes a radical reduction in the Income Tax. Significant increase in the exempt personal and family minimum to 12,000 euros and 3,000 euros for the first and second child. Single fixed rate of the 20% up to €60,000 per year, with any excess over the aforementioned limit being taxed to the 30%.
In corporate tax, reduce the general rate d to 20% with a reduction of 5% in the event that the profits are not distributed and are kept in the company as reserves, and the reduction of corporate tax for SMEs to 15%.
Without compensatory measures for these tax reductions, VOX's tax proposals have been rejected by the main economic agents as unrealizable.