When the Spanish government scraps its 400 euros a year tax rebate it will affect 96% of tax payers,the very people who did not cause the economic mess in the first place.Yet it is the tax payers who are having to foot the bill when most are already struggling.
Yes ,the taxman is suffering because of reduced consumer spending and the high unemployment levels.However the way to tackle it is to ask everyone to do without.Just for a couple of years maybe the country can just cut back on its spending .Most citizens would go along with that.As it is ,everything is going to be affected by increased taxes on virtually everything,which is not an encouragement for everyone to go to the high street and spend.It has been calculated that this will cost the average tax payer an extra 500 euros a year.It is always the “average” tax payer who suffers the most.
IVA is due to go up from July 2010 and this will put up the cost of living right across the board from the luxurious items to the mundane.Every business is going to have to pay more than 400 euros a year more in IVA and of course this will also be passed on to the consumer.
Therefore next year everyone in Spain is going to be hit by these State taxes.Add to that the local tax hikes in many areas and people will begin to wonder why they bother to work at all.
