by Jason Moore

W HAT economic policy is the Spanish government following? At the moment it appears that they are on a mission to tax and penalise the small group of people who are in w ork. Income tax has risen and now VAT is to increase in the New Year. Some indicators say that it could rise by as much as four percent which will dent consumer confidence and send hundreds if not thousands of businesses to the wall. Whatever happened to taxing the rich? Spain has a small army of very rich people, who pay far less tax than their counterparts in Britain. The tax burden facing those in employment is quite incredible at the moment and I can´t see the Spanish economy being brought back to prosperity as a result of all this tax and spending hikes. Everyone knows that Spain is in deep economic trouble. But, the government is being rather cowardly. The days of regional adminstrations are over and the government should start bringing power back to Madrid and save money.


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