Yesterday tax season began in Spain as taxpayers begin to report what they earned in 2013. Revenues from the personal income tax are expected to show that initial signs of recovery have not trickled down to the middle and upper-middle class, who are paying the lion?s share of this tax, which accounts for 40% of the government?s overall tax revenues.
During this tax season, the number of filings will fall by 0.5% and overall revenues will drop 1.6%. Only 4.7 million taxpayers out of a 19.3 million person tax base will declare a positive tax liability. The numbers speak for themselves. We created a tax that doesn?t work and slows growth.
