good part criticism from critics wealth tax focuses on causes of double taxation. They claim that the tribute has fallen tax base (savings, real estate, stock and wealth) pre-taxed sources of income (salaries, capital gains, professional income, donations, legacies). When it comes to real estate, tax critics even speak of “multiple taxation” as taxation in the second house IRPF, municipal IBI or capital gains. Double taxation is one of the arguments that led to the abolition of this tax. in sweden.
this tax advocateshowever, it claims that there is no such double taxation, such as when VAT is applied to a good or service acquired after receiving an IRPF taxable salary.
Some critics of the tax warn of the “natural tendency of tax to tax.” confiscation”, as a professor, insofar as it is a tribute to be paid with income, though inherited Cesar Garcia Novoa’s photo. In the ‘White Paper for tax reform’ Institute of Economic Research (IEE) is affiliated with the CEOE. This is the argument that drives entrepreneurs as follows: Carlos Bartomeu, President of Air Nostrumsuggesting that the principle of fiscal progressiveness (more taxation at a higher income level) focuses on personal income tax through higher taxes if more collection is required. “Now the inheritance tax will be paid whether you produce money or not,” argued in a recent interview on El Periódico de Catalunya of the Prensa Ibérica group.
set limits
To avoid this risk, there are ‘so-called’ in the law.personal income tax and joint limit of wealthThis determines that the sum of what is taxed by the two taxes cannot exceed 60% of the income generated per year (the tax base of the IRPF), albeit with a limit: at least, in any case, it will be paid 20 percent of the first installment resulting in the wealth tax. “No matter how low the income is, even if it equals zero, it will always be necessary to pay 20% of the wealth tax”, censor García Novoa underlines the confiscation nature of this tribute.
Overall, this 60% limit allows wealth tax to be paid in half for assets between 5 and 10 million, or by a third in the case of top assets, according to estimates included by experts. The ‘White Paper on Tax reform’ commissioned by the government to a group of 16 experts. In the case of a taxpayer with assets of 112 million and annual income of one million, the initial share of wealth tax (3.7 million) is reduced to € 740,962 (five times less) after the 60% limit is applied. assumptions made by Tax Advisory Economists Registration (Reaf) General Council of the Colleges of Economists.