The 5 keys to the tax reform proposed by United We Can

  • The purple formation defends a specific tax for fortunes that exceed one million euros

United We Can has resumed its pressure on the PSOE to launch a Tax Reform. The purples have been fighting with their partners for two years to implement all the measures that were included in the coalition agreement and that meant taxing the highest net worth. So far only lukewarm steps have been taken by the socialists. Now, at the gates of the coalition government facing the restructuring of taxation and with the Foment del Treball proposal on the table, United We Can want to start marking the margins of the negotiation. Some bases that the PSOE, for the moment, rejects.

These are the main measures of the tax reform proposed by the purple formation.

New tax on the rich

Among the most ambitious measures is the creation of a new tax on large fortunes to replace the current tax on Heritage, which would focus on fortunes greater than one million euros, with an exemption for habitual residence of 400.00 euros. This new tax that they propose would not be discounted by the autonomous communities, to avoid cases such as that of Madrid, and would range from 2% for those who exceed one million euros to 3.5% for those fortunes that exceed 100 million. This measure would raise, as they point out, 10 billion euros, which represents a third of the increase proposed.

Raise income tax for the rich

They also insist on raising the personal income tax For rents that exceed 120,000 euros. In the section that goes from this figure to the 150,000 they want to increase 3 points, to reach 48%. The next step, up to the 300,000 euros would be taxed at 50%, compared to the current 45%. And incomes over 300,000 euros should pay 52%.

In full rise in energy prices, the purples also raise a 10% surcharge on the Corporation Tax on electrical companies for a minimum period of five years, with the possibility of extension. According to his calculations, this would mean about 1,500 million euros that would be used to lower the price of electricity.

They also propose taxing empty homes in order to feed the rental market and lower prices. Although the future housing law includes mechanisms for municipalities to increase the IBI by up to 150% on unoccupied properties, the purples point out the need for “more ambitious measures” that are applicable throughout the territory. So they collect a tax of 5 euros per square meter of empty housing. At the state level they believe that 1,700 million euros could be raised.

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Another of the most ambitious measures is to launch a “synthetic tax that damage the nutritional quality of food“. The objective, they develop, is to penalize the consumption of foods that are “harmful to health”. For example, they maintain that in the 2021 Budgets the VAT on sugary drinks will be increased from 10% to 21%. against, they want to expand the list of food and non-alcoholic beverages with a super-reduced rate (4%) and include feminine hygiene and animal feed products in this range.

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