The CEOE filed Wednesday with little faith a proposal for tax reform based on a general tax cut - down prices, personal income tax, corporate taxes, eliminate tax-free allowance and raising Heritage Probate and trust - enhancing tax revenue, one of the great problems of Spain, growth and the fight against fraud.
" One thing is what we say and other things to do. We say what we think should be done, if we were in the government would likely be much harder to do because you have to go with the scalpel. We have the great advantage that they can say things and not have to put into practice, " said the president of the CEOE, Juan Rosell, the question now becomes viable if tax cuts asking employers. The numbers " add up better " when there is higher level of activity, then nuance.
Spain has a tax burden eight points below the European average (32% to 40 % of GDP) and two below the OECD. Between 2014 and 2016 faces a cut of about 38,000 million euros in order to reduce the public deficit at 4.2% of GDP. In this context, and with the European elections in spring, Mariano Rajoy Executive seeks to soften the tax on labor income tax that went down in 2012, and compensate with increased taxation on consumption (VAT) and property at the expense of broadening the tax base.
What the CEOE poses in a 52-page document consists, in general, in a two-point reduction in social contributions and a reduction of nominal corporate tax rate - 30% in large companies and 25 % to SMEs - closer to " the effective tax rate," which is paid after deductions liquid. In 2012, for example, the companies paid 12.5 % of declared income, according to the Tax Office.
The CEOE also wants to eliminate the tax treatment depending on the size of companies and even the elimination of system modules, as said the president of the Tax Commission of the employers, Pilar González de Frutos, although Rosell nuance regarding modules that the idea is to look sector by sector to modernize the system.
The employer is also opposed to any increase in VAT rates, as they are in line with other European countries, and expand the tax base by passing products to the general reduced rate, a move that other proposed International Monetary Fund (IMF) and Brussels.
Spain is the European country with the lowest tax levied by taxing consumption, as " the real problem is the fight against fraud." In the same vein, the president of the employer defended the need for measures, excluding the tax amnesty, that encourage the regularization of informal economy, such as bonuses and incentives in income tax for domestic workers, a measure that examines the Government.
As for the possibility of eliminating the deduction for housing retroactively retroactivity employers rejected any relief because it creates legal uncertainty.
Tags: break, employer, government, requests, tax