Spanish coalition plans ‘wealth’ tax on top 1% to support ‘middle class and workers’ — MercoPress
Spanish coalition plans ‘wealth’ tax on top 1% to support ‘middle class and workers’
Spain’s fragile left-wing coalition government plans to impose a temporary tax on the country’s top 1% of the population to help pay for inflation and cost-of-living relief measures.
“We are talking about millionaires, those who are in the 1% of national income,” Finance Minister Maria Jesus Montero told a television station on Thursday.
She said it was important that “we can fund aid to support the middle class and workers”, but did not provide details on the tax rate or how much it would increase.
The government has introduced a series of measures to help people cope with soaring prices, such as free public transport, vouchers for students to stay in school and subsidized petrol.
Spain’s annual inflation rate hit 10.4% in August, remaining in double digits since June, a level not seen since the mid-1980s. In July, the government introduced a bill to create a temporary tax on banks and large energy companies.
“We will use a scheme similar to that of energy and banking companies. For the next two years … the great fortunes of this country will be asked to make a temporary effort with an exceptional contribution,” Montero said Thursday.
She has yet to negotiate the plan with her socialist party’s coalition partner Unidas Podemos and acknowledged that parliamentary approval procedures mean it may not be ready by early 2023.