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negotiation between The Government and we Can to agree Budget moves forward at a good pace from

The Government and we Can negotiate raise the income TAX to income of over 120,000 euros

negotiation between The Government and we Can to agree Budget moves forward at a good pace from

The Government and we Can negotiate raise the income TAX to income of over 120,000 euros

negotiation between The Government and we Can to agree Budget moves forward at a good pace from conversation between Pedro Sanchez and Pablo Iglesias. This Wednesday Government has opened door to negotiate increases in personal income TAX to rents very high, something that until now was not accepted. The Finance minister rejected categorically rise on income above 60,000 euros a year —that charged by some teachers and doctors, he said at meeting— but was willing to talk about climb from 120,000 raised we Can. The preference of socialists, in any case, it would be putting threshold to be 150,000.

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  • The Government will negotiate with we Can tax hikes to companies, banking and technology
  • Growing rich from income statement: 8.481 people declare more than 600,000 euros
  • The Congress grave path of deficit, with abstention of members of Government

income TAX is tax most politically sensitive of all because it affects great majority of workers. The minister Maria Jesus Montero, according to sources of negotiation, he explained to we Can in meeting that rise above 60,000 would involve taxing more to some University professors or doctors, and Government has no intentions of doing that. Prefers to concentrate on climbs of tax of societies to large enterprises, for example.

The chief negotiator of United we Can, Pablo Echenique, told him that at least we could talk about increasing tax burden for those who earn € 10,000 a month to 120,000 a year. There answer was different, and Government argued, that it is willing to negotiate, although not closed any agreement. The minister said that it would be better study a rise from 150.000 euros per year, highest part, which is what is proposed by PSOE in opposition, when raised to elevate type for such revenues to 52%.

No agreement yet

In appointment, in addition, Echenique, were rest of negotiators of United we Can, as representative of United Left, Carlos Sánchez Mato, leader of Economy of formation abode. Nacho Alvarez, and deputies Txema Pebble and Josep Vendrell. The meeting is not achieved a final agreement, so that re is still a lot of negotiation, but for first time re was a rejection of blunt of Government, as it had been doing until now, to play IPRF to rents very high. Officially, Treasury insists on idea that you don't like increasing personal income TAX, but meeting made it clear that re is room in that strip of high that affects very few taxpayers, about 70,000, versus nearly 600,000 who declare to earn more than 60,000 euros.

The president, Pedro Sanchez, only a few weeks before coming to Government with a censure motion last April, he noted in an interview in Expansion: “we will raise personal income TAX to 52% for those earning more than 150,000 euros.” This open door to play tax on income even if it is only for rents too high, would be substantial political change.

The Government insists that it wants to increase State's revenue without affecting pocket of middle classes, and that's why y focused on anor point on which re is agreement with we Can, that is, touch up corporation Tax and put a minimum to ensure that large companies, who manage to pay a 7% or even less, have to pay at least 15%. But We stood firm in negotiation arguing that it is essential to send a message to progressive and raise income TAX to higher incomes. The formation of Pablo Iglesias, in addition, calls to raise taxes to capital income, now at 21%, but only for those who are in a stretch is very high. In reality vast majority of points that suggested We may seem open to discussion once it was agreed to present at Congress a proposal to reform budget law and to wrest Senate ability to veto that now Camera has High —with an absolute majority of PP— on deficit targets.

In open negotiation, Government, and we Can discuss several issues related to fiscal policy, as taxation of large fortunes through SICAV or a tax on banking that president Pedro Sánchez has promised, but so far have not materialised details. Both groups are advancing on an agreement that would send a clear political message that legislature is not depleted and that Government maintains support of its key partner, but it is not enough to ensure stability nor approval of Budgets.

The PSOE will not just Can. Once both groups to close agreement, you will need to negotiate with PNV, with very advanced of all, but also CKD and PDeCAT, much more hard. If you give excessively with Can in questions of taxation of large companies, and rents very high, risk is that parties traditionally opposed to se issues as PNV and PDeCAT refuse to support you. The conflict in Catalonia is even more complicated negotiation. In addition, PP and Citizens control officers of Congress and can make it very hard for PSOE and its partners to reform law of stability quickly.

The Government is confident in having Budget presented in November and approved in February, before municipal and regional elections, but for moment, all are desires. The only thing certain is that negotiation with We will well and flexibility on a key issue is a reflection of willingness of Government to seek stability and to clear rumors of early elections due to ir weakness in parliament.

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  • do you Know how to read your payroll and calculate personal income TAX?
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Publish Date : 29 Ağustos 2018 Çarşamba 11:21

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