In times of crisis, when the risk of poverty index increases and serious needs increase, it is logical for the state to help the disadvantaged. Increasing their disposable income in any way to get them out of poverty. To do this, if you don’t want to increase the public deficit excessively, it is acceptable for direct taxes to lower the rate in the lower income brackets and increase it in the higher income brackets, which will increase fiscal sacrifice. Those who will benefit most from this policy will be those who no longer pay taxes, as their income does not even reach the lower limit. This is not the case for the reform promoted by Ximo Puig, which would cut income taxes below €60,000 (more than 90% of taxpayers, practically all) and would not distinguish between income from business and capital.
Quite something else wealth taxA pure and simple tax gift to the 20,000 richest families in Andalusia paying only high incomes. Concept “lower taxesSo precious these days” becomes an unfortunate price of political power over the privileged classes in this case (and others). A gift that will certainly prevent financial aid to those who need it most.
These lines are intended only as a warning to travelers. Among other reasons, reducing taxes is not an end in itself or an absolute benefit, because public resources are needed to finance the welfare state. Also, there is a great gap between improvements in income redistribution to integrate exclusions and financial aid to the elite, which so much affects the distribution of political and social power.
Source: Informacion
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.