Mario Draghi delivered a clear message yesterday to Cristóbal Montoro, Spain's Minister of Finance, Cristóbal Montoro, urging him to lower taxes. Draghi, the President of the European Central Bank, thinks that tax conslidation is inevitable for Europe, but not through tax hikes becuase these are an easy measure for governments to employ even though the undermine economic growth.
The ECB's plan is to cut unnecessary spending. Taxation in Spain is already high enough. Still, Soria said yesterday that the VAT could go up for some basic products even though Rajoy has promised to approve any more tax increases.
We cannot afford more taxes. The government should find a way to lower them and actively persecute instances of tax fraud that are eroding revenues from higher VAT taxes.
