It'll warm the cockles of
Art Laffer's heart;
Finance Minister Cristóbal Montoro told Efe news agency that low-earning self-employed workers — those who make no more than €12,000 a year — will have to pay lower income tax starting in July. The withholding rate once the reform goes fully into effect next year could be around 15%, compared with the current 21%.
The tax breaks announced by the ruling Popular Party (PP) are perfectly compatible with European Union deficit targets, said Montoro. This is because tax receipts are growing at over 5% this year compared with 2013, and also because all forecasts point at an economic pick-up in Spain next year. The government is predicting growth of 1.8%, although other analysts are talking about even higher growth.
The greater the output, said Montoro, the more taxes are paid and the more jobs get created.
Jobs, jobs, jobs!
No comments:
Post a Comment