Treasury believes there is room to lower taxes next year, according to Ministry sources cited by the daily, after the chairman of the caretaker government, Mariano Rajoy, announced its intention to lower the income tax if he wins the elections.
Rajoy in the Political Conference PP (Photo: PP)
a measure that would apply from 1 January 2017, gradually, by providing that the economy will grow 3% this year. Thus, the idea that the economic situation and the path of consolidation prevent approve tax incentives, arguing that the reduction in income tax rates and corporate tax reform included in has been a determining factor of economic growth would be rejected. The Ministry is in favor not only to maintain but to approve new bonuses for hiring, with those that already are in place that offer rebates on contributions for employers, but do not specify the calendar.
the rebates would be approved by the tax burden was growing above 38% of GDP in which it is now. Finance expects revenue to recover in the second half of the year and the taxable incomes continue to rise, as apparently already reflect the May data managed by the Ministry, with a reduction of the fall of the interest. The same sources of finance indicate that GDP growth is also needed to stabilize public debt, which currently has now reached 100% of GDP. Daily recall that the official government forecast is based on a scenario in which GDP will increase by 2.7% this year and 2.8% next, with possibility is greater.
in this regard, the minister in functions, Cristobal Montoro, speaking yesterday at a conference organized by the American Business Council, said: “Today Spain is growing and creating jobs largely because we have lowered taxes,” he said , after which he added. “in the elections the Spanish will have to choose between those, like the PSOE, that lowering taxes never has done well, and there are threatening to further increases”
COUNTRY 18 / tHE WORLD 1, 8, 9 / ABC 23 / REASON 33/31 // FIVE DAYS tHE ECONOMIST 43
(Text Prepared made from news summary press services Moncloa)
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