Spain’s leftist coalition government on Thursday announced a series of downwardly redistributive fiscal reforms \u2014 including a temporary “solidarity” tax on the nation’s 23,000 wealthiest residents \u2014 that lawmakers hope will ease the cost-of-living crisis hurting millions of working people.<\/p>\n
In 2023 and 2024, the 0.1% of Spanish taxpayers who own more than \u20ac3 million ($2.9 million) in assets will be subject to a new wealth tax.<\/p>\n
According to<\/a> The Associated Press<\/em>: “People with holdings of \u20ac3 million to \u20ac5 million ($2.9 million to $4.9 million) will be taxed 1.7% and those whose personal worth is \u20ac5 million to \u20ac10 million ($4.9 million to $9.8 million) will be taxed at 2.1%. Individuals with fortunes above \u20ac10 million will pay 3.5%.”<\/p>\n This levy on 1 out of every 1,000 citizens, which Finance Minister Mar\u00eda Jes\u00fas Montero described as a “solidarity” tax, is one of many changes to Spain’s upcoming budget that are intended to mitigate economic hardship as the prices of energy, food, and other essential goods continue to soar due to corporate profiteering and the destabilizing effects of the Covid-19 pandemic, the war in Ukraine, and the climate crisis on global supply chains.<\/p>\n As AP<\/em> reported: “The government also plans to increase the income tax rate from 26% to 27% for people earning more than \u20ac200,000 ($196,000). The capital gains tax for incomes above \u20ac300,000 ($294,000) will go up to 28%, an increase of two percentage points.”<\/p>\n These measures \u2014 agreed upon by the Spanish Socialist Workers’ Party and its junior coalition partner, Unidas Podemos \u2014 are expected to raise \u20ac3.14 billion ($3.08 billion) over the next two years. The government plans to use this revenue to fund programs that are designed to assist those with modest incomes.<\/p>\n Spain says it will levy a temporary asset tax against 23,000 people (the wealthiest 0.1%) for the next two years as low-income families are struggling to afford food.<\/p>\n The average salary in Spain is around $20k\/year and food prices have hit their highest point in over 20 years. pic.twitter.com\/NiObinBA2k<\/a><\/p>\n — AJ+ (@ajplus) September 30, 2022<\/a><\/p>\n<\/blockquote>\n\n