Four days after last year. next 25 may on average,we will stop paying taxes And social contributions to the public coffers for both individuals and companies. It was the 21st of the same month in 2022.
On the 25th, taxpayers will have paid off their debts with public funds. Despite Not the most scientific way – taxes are not paid homogeneouslya by all citizens and the sum total of all collection includes individuals and companies – most revealing for understanding how much of a country’s wealth is ‘eaten’ by taxes as a whole.
If we allocate all of our income to paying taxes from January 1, applying this calculation, in 2023 we have 145 days left in the public coffers, up from 141 days last year.
This symbolic day liberal economists they say tax free day or ‘tax freedom day’. The more you engage in exercise, the greater the rate. tax collection on total wealth produced by the country. In fact, there are some liberal ‘think tanks’ in Spain who calculate that the date falls on June or even July.
In any event, the date may change, as is the review of the data estimated by the Government and sent to Brussels in its report. stability program updatebecause the economy is not stable. Therefore, it is information that should be taken as a reference for the development of the tax burden.
For example, last year collection was 23,000 million more than expected in the State Budget. In addition to the dynamism in the economy that exceeds the most optimistic forecasts, inflation It averaged 8.4% during the year as a whole, although the government assured that this was not the main factor.
The day is delayed compared to other years, economic growthjob creation and therefore more taxpayers -either they have to pay more- or increase taxes or income from the fight against tax corruption.
crisis and abundance
in stages crisiscollection tends to decrease, thus reducing the tax burden and increasing the portion of the pie that goes to it. public expenditureso in 2020 the deficit widened as it was due to the pandemic. Although in Spain recessionSince 2012, with the introduction of PP to the State, the tax burden has increased with the increase in personal income tax and subsequently the increase in VAT. with personal income tax reform until it started to decline from 2016. Then he started going back down the path.
Data for Spain, which differs between regions and has a lower tax weight in Madrid than, for example, Catalonia, are still far from the average for the European Union (EU) and the euro area, which imposes a discount day tax. in mid-June. USA is one of the countries where this date is earlier and reached almost a month earlier than Spain on April 18 this year. It is also a country characterized by a lower weight of public spending, and especially social spending.
a study Molinari Institute of Economics, France; and the ‘Foundation of Americans for Tax Reform’ Considering the weight of taxes on the economy, on July 3, 7, 16 and 19 in the last two cases, respectively.
The other side of the coin is weight. public expenditure. According to the 2023-2026 stability program update sent by the government to Brussels, the state will continue to spend until June 22, that is, one day earlier than last year. The trend in the spending section will be down, although it will stagnate between 2024 and 2026 on June 18 according to the government’s forecasts.
The weight of the taxes, on the other hand, will deepen by May, until it hits the 28th of that month in 2026, according to the same estimates of the Executive. that trend It will not be due to economic dynamism and the fight against fraud, rather than a general increase in taxes., according to the Government’s comment. And he denies that much of the increase was due to inflation.