Spain to raise taxes for wealthy
Spain will raise taxes for high-income earners to help chip away at the country´s outsized deficit, the prime minister said Wednesday.
Jose Luis Rodriguez Zapatero said most Spaniards agree with him that a special effort can be expected from those better off as the government enacts austerity measures like cutting the salaries of civil servants and freezing pensions.
Zapatero gave no details of what his tax plans are, but said any increase would be of a “limited” nature and not affect the middle class.
“In my opinion, any citizen feels that the effort should be greater from those who have more,” Zapatero told a news conference during an EU meeting with Andean countries.
As for when an increase might be approved, he said: “It will be when the government deems it appropriate, in line with its program for deficit reduction.”
Zapatero's government announced the public sector wage cuts and other spending reductions last week under pressure from the European Union and jittery markets to get Spain's deficit down. It was the equivalent of 11.2 percent of GDP last year, well above an EU limit of 3 percent.
