Spain's Economic Minister, Luis de Guindos, confirms in an interview that will be published today that the government intends to repeal an income tax hike that was created in 2011. The change will go into effect when Finance executes its tax reforms. A general plan has already been drawn. To become more competitive with our surrounding countries, we need to cut taxes for workers, companies and savings.
The government should not forget taxes on savings, which is an area that does not get much attention. The goal should be to increase the savings rate while lowering tax rates, which can help us get out of the crisis and make an economic recovery more sustainable.
