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Fiscal deficits
continue to mount in Spain in spite of austerity measures and tax hikes. Spain desperately needs work reforms, but on that score there has been little progress.
Instead, the government keeps hiking taxes to combat ballooning deficits, only to see further
declining revenues in which
the government hikes
taxes again and again in
an absurd attempt to make up for those shortfalls.
Via Google translate from Libre Mercardo
please consider The VAT increase is the largest tax increase democracy.
Each Spanish
pay an average of 20.8%
VAT, 369 per year, six days
of extra work to comply with the Treasury.
The VAT increase, which took effect on Saturday, raising the general rate of 18%
to 21%, reduced from 8%
to 10%, while the super-reduced-duty on-staples remains 4%. In addition, hundreds
of products previously taxed at 4%, as school supplies, and 8%, such
as film and hairdressers, pass
it to 21%, nearly three multiplying its previous taxation.
But beyond these percentage increases, the increase in VAT means that a worker will pay on average
369 euros per year ditional
this concept, a 20.79%, according
to a study by the think
tank Civics. Thus, the taxpayer will have to work six days a year just
to meet its commitments to the Treasury.
In retrospect, it is "the largest tax increase in democracy", as it will reduce the disposable income of citizens even more than the increase of VAT by the
previous government of
Rodriguez Zapatero (192 per year) and the recent income tax hike approved
last December Mariano Rajoy
(137 euros) "together", the report warns. Successive increases applied to income tax and VAT since 2010 have undermined the middle class almost
700 euros per year.
Furthermore, according to
the head of Research Civics, Cristina Berechet, this higher tax
will not serve to raise
more, and will restrict consumption and probably increase fraud. "The VAT rise is incompatible with some as high taxes to work, "he says.
Stunning Ineptitude Will Make
History Books
Spain's unemployment rate
is over 25% and the youth
unemployment rate is near 53% yet the fools in the Spanish government hiked taxes yet again, this
time by the largest amount
in history.
Spain's handling of this economic implosion is sure to make the history books as a
prime example of complete
ignorance in how to deal with a fiscal crisis.
Flashback 2010
Check out this YouTube
Video Montage (in Spanish) from
Rajoy / PP in 2010.
Rajoy states raising the
VAT would be a counterproductive stab in the
back of fellow countrymen.
No more VAT hikes was a
key election promise.
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