The Organization for Economic Cooperation and Development (OECD) claims in its latest biennial report on Spain a change in the tax reform approved by the Government before the summer for “give more priority to employment “. According to the report, the organization, reducing employer contributions to social security for workers with lower qualifications, and increasing environmental taxes on property, and reducing exemptions on value added tax, corporate tax and tax income. “
believes that” from an economic point of view, the best option would be to apply the standard rate of VAT to the widest possible tax base “ and raises compensasr . sectors that benefit from reduced with the aforementioned reduction of contributions to the Social Security types also makes this recommendation: “The government should also eliminate the tax deduction for mortgage for those who purchased their homes before January 2013 payments. deduction is expected to assume a cost of $ 1 800 million in 2014 and only benefits a group of homes. “
In your opinion ” could be promoted equality and neutrality subjecting investment all sources of income, both -Dividends, capital gains and capital and labor interests-at the same marginal rate of income tax . The Government should also consider reviewing, along with other EU countries, the treatment of collective investment vehicles, namely receiving investment companies with variable capital (SICAV), which are taxed on corporate income tax at a rate of only 1%, and strengthen controls to ensure that this instrument is used properly and not to avoid paying taxes. “
OECD Recipes also include , among others: “Go back to budget balance adjusted for the cycle in 2017″ and “reinforce active labor market policies improving training, strengthening the capacity and efficiency of public employment services and enhancing
coordination between different levels of government. “In his opinion,” the government introduced a reduction in employer contributions to social security through a flat fee of 100 euros per month for two years to all permanent contracts signed until the end of the year. While the tax is generally reduced, the flat rate is regressive and implies a higher tax for low-wage workers. “
The OECD notes that ” The Spanish economy has returned to a path of moderate growth after a prolonged recession, which is crucial, spreads on sovereign debt have been reduced drastically. This significant change highlights the effects of the significant reforms undertaken to strengthen the with a rate of slightly-lower current fiscal consolidation and reforms aimed at improving the market – banking sector assistance program financially, the actions of the European Central Bank, improving the sustainability of public finances is included among those labor and goods and services. “But now” the major challenge now is to build on these achievements in order to boost growth and reduce unemployment significantly through sustained productivity growth and competitiveness and reduce external debt. “
The report adds recommendations for sustainable growth in the medium term” raise the quality of innovation and strengthen competitiveness by promoting universities and research centers and larger specialization, increasing the allocation of resources based on the achievement of results and implementation of mechanisms for international peer review, and provide more career opportunities for more qualified researchers. ” Also, ask “prices homogenize emissions greenhouse gases from different sources in order to contain carbon emissions and thus promote development
industry and employment in sectors with respect environment. “
In chapter to achieve” a more dynamic business sector, “her recipes include” expanding the tax base of the income tax, reduce the rate and eliminate special regimes for small and medium companies “; and “continue to promote the diversification of sources of business financing, reform the system of licenses and permits, and reduce regulatory fragmentation applying the law of market unit.” Also “reduce the number of professions where it mandatory to belong to a professional association and the cost of the fee.”
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