A nation never expects that its government will thwart the road to economic recovery. And based on the responses that employer management group presidents have provided to elEconomista, the Prime Minister's office is doing just that by raising the VAT and increasing regional government taxes.
Business owners suspect that Montoro wants to raise the VAT to compensate for lowering personal income taxes, a maneuver that could slow spending and, as a result, the recovery.
The purpose of this reform is to rebalance taxation, first by lowering them and then altering them in a way that promotes investing. Having the highest taxes in Europe doesn't help.
