The government announced yesterday that tax reforms will be approved in a Cabinet meeting on either June 13 or June 20. Yesterday Rajoy said that there might be "substantial" cuts to the personal income tax even though he has promised time and time again that he would not lower them past where they were when Zapatero was in office.
Along with the tax cuts, tax brackets will be simplified, and therein lies the trick. 2015 is an election year, and voters would feel the effects of a tax cut in their paychecks. But the impact on the government's budget would not be published until 2016. The fear is that simplifying tax brackets will neutralize any effect a tax cut would have, something that we could only find out in 2016 once elections have happened.
