United We Can’s tax proposals meet resistance as the PSOE remains unwilling to increase taxes on the highest earners. On Tuesday, after several uncertain weeks within the executive, the socialists blocked a bill brought by government partners. A new fiscal figure would require fortunes above 10 million euros to contribute more, with officials explaining that the moment was not right given the ongoing crisis.
“Families cannot pay more than those who have more. Supporting this measure is a matter of patriotism,” stated Ione Belarra, the Minister of Social Rights and a Podemos leader, in a post that stirred the party’s ranks on social media. From the floor of parliament, Txema Gravel, senior figure of the purple parliamentary group, acknowledged that the plan appeared “already doomed” due to the closeness of its partners, while signaling that the proposal would send a strong signal to citizens. The combined opposition from PSOE, PP, Vox, Cs, PNV, and PDE–blocked any discussion of the text. Nevertheless, several left-leaning groups expressed support for the idea.
Purple Offer
Guijarro explained that the objective was to add a supplementary tax to the Wealth Tax that applies to the ultra-wealthy. The proposal set a 3.5% rate on the portion of wealth exceeding 10,700,000 euros. With this momentum, the purple faction continued to push for additional measures. New steps are under consideration in the bill, proposing a tiered rate from 3.6% for fortunes over 10 million euros to 5% for wealth above 150 million euros, with increments of 0.2% for every additional 20 million. The purple leadership emphasized the necessity of boosting public revenue to sustain essential services during a time of crisis.
Critics noted concerns about “financial dumping” by some autonomous regions, including Madrid. While the Wealth Tax remains a national levy, its administration has been devolved to the communities, allowing for regional discounts or exemptions. The purples argued for removing this flexibility so that the state central authority would govern the new levy, establishing a universal baseline for substantial wealth across the country.
critics
Socialist deputy Patricia is White argued that the proposal risks overlapping rules and questionable collection efficiency, labeling it an non-consensual approach. This contributed to the Socialist stance against the purple bill, despite previous opposition to other tax reform efforts from United We Can. Blanquer asserted that the coalition government supports alternative wealth redistribution measures and that an ongoing White Paper on Tax Reform, prepared by a panel of experts at the Finance Ministry’s request, is under careful review. Congress spokespeople from the Socialist side stressed a need for a careful, thorough study aligned with expert recommendations.
Disagreements within the coalition were noted by several groups in the chamber, who urged the purple faction to secure coalition support before advancing measures to Congress. Acknowledging the tension, Idoia Sagastizabal, a deputy from the PNV, confirmed that these divisions had sparked concern among voters and some regional bodies. Observers described the situation as a form of internal government friction, highlighting the ongoing debate over how best to balance fiscal responsibility with social needs.