Viewpoint

SPAIN is still in a big economic mess despite assurances from the Spanish government that the economy is on the mend. Part of the problem is that the government’s tax take has fallen by 50 billion euros since the property bubble burst five years ago. Now 50 billion is alot of money and this is one of the reason why the country is in such an economic debacle. How does the government finding the missing 50 billion? Well, there is no simple answer; it is estimated that the underground economy is believed to be worth around a quarter of Spain’s economic output. Now, the underground economy is those who do not pay tax on their earnings. Surely the Spanish government should make this their top priority before imposing even further taxes on those who are already paying their fiscal obligations? The so-called black economy is thriving both in the Balearics and on the mainland. "Cash-in-hand" appears to be a way of life for some. Now, Isuppose in the good old days before the recession the tax authorities just turned a blind eye to it, but now things are different. The government is contemplating a complete overhaul of the taxation system and the Valued Added Tax on some items, could rise. In other words the government is desperately trying to plug a massive black hole in its finances. My advice is a mass crackdown on those who do not pay their taxes and refrain from silly fiscal charges such as the now scrapped matriculation tax.