The government has announced, with more precipitation than success, which will use so-called technology tax (commonly known as Google rate) to finance partly increase in cost of pensions agreed by Rajoy with PNV in exchange for party Vasco approves budget of 2018. The decision is shrouded in extreme confusion, whose probable cause is period of political bewilderment that government and People's Party live. The creation of a tax on technology companies is unobjectionable; It comes from an initiative of European Union, whose obvious objectives are to increase collection of Member States and to set up a European unified fiscal policy on companies that so far elude with notable success. But application that government is trying to make raises so many doubts that, at best, it looks like a clumsy patch.Previous Editorials
A very expensive pact (28/04/2018)
EU rules (28/06/2017)
Drifting tax Mine (28/12/2016)
of entry, levy on technology is thought of as a tax, that is to say, like a levy whose collection swells coffers of state for universal purposes. The Spanish government converts this tax — which must be approved by a substantive law — at a rate by ascribing it purpose of paying part of surcharge (about 3.4 billion in two years) of pensions.
But most serious confusion occurs because stability Plan already counts as if state were to raise 600 million for this tax in 2018. Escolano and Montoro should explain how this is possible to perplexed Spaniards, because it is very doubtful that re is time to pass corresponding law; And if it were to be approved in haste and running would hardly raise 300 million, half of what is estimated to correspond annually to Spain according to community calculations.
The thread of technological tax has reached ball of deficit. The European Commission, attentive to inconsequences of Spanish fiscal policy, estimates that this year public deficit will be 2.6%, four tenths on committed target. Not surprisingly, government has launched to lower taxes to buy parliamentary votes to citizens and raise public salaries. This excess is before cost of pension agreement. The question is simple how does Montoro plan to adjust overflowing deficit to 2.2% commitment? With new cuts in health and education?
The government has been seriously mistaken in treatment of pensions and, incidentally, confuses citizens. The problem of system is its financial equibrio in medium and long term; Raising revenue — by debatable methods — to pay for revaluation of benefits — after having emphatically denied it before — is a patch designed to keep Rajoy and PP at forefront of government. A petty policy that should be punished at polls. But it does not solve medium-and long-term imbalance of system, caused by an increasing increase in pensioners with ever-increasing life expectancy and with more expensive benefits. The reform of 2013 did not solved problem; But his hasty liquidation does nothing but aggravate it.
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