Government tax increases would force each Spanish to pay 365 euros more per year
Madrid
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Today, June 26, is the Fiscal Liberation Day. A date calculated every year by the think tank Civismo to find out how many working days the Spanish dedicate to paying the Treasury. In this exercise, on average, to comply with tax obligations, employees have had to work 178 days. And, if the government's tax increases were consummated, the "invoice" for each worker would increase by more than 365 euros per year.
This indicated date arrives a day earlier than in 2019 because this year is a leap year, but the trend is very similar to that of the previous two years. Taking the average salary of 25,123.99 euros, which implies a total labor cost of 32,636.06 euros, the Social Security payment supposes 7,512.07 euros of employer contribution and 1,595.37 of worker contribution; that of personal income tax is equivalent to 3,212.36 euros; that of VAT, at 1,960.05 euros; Special Taxes, at 896.78 euros; and those fully transferred, the regional and municipal, to 767.40 euros. Thus, the total cost of taxes amounts to 15,944.03 euros.
For each type of tax, the following days are dedicated to paying them: the quotes, 103 days; personal income tax, 34; VAT, 25; the Special Taxes, 11; and others, 5 days. In total, 178 days is the time it takes for a Spanish worker to fulfill his obligations with the Treasury. The other 188 days are "disposable income," so to speak.
Thinking back to 2021, Civismo has calculated approximately how much more will have to be paid next year in the face of the threat of tax increases from the government and with the pending "invoice" of the Covid. The public debt would already increase to 115%, being able to see the fiscal cost increased by 17,326 million euros, which is equivalent, in per capita terms, to be paid 365.52 euros more each year, and 913.80 euros more per household. "In other words, it means 5 more days of salary, which would mean returning to the fiscal situation of before the 2015 reform," concludes the think tank report.
Likewise, the institution warns that what was saved during confinement may well need to be used to pay those future taxes. “It is reasonable to think that there may be early tax increases in the coming months, for which taxpayers must prepare. We run the risk that the resources generated by the families during the confinement have to be destined to pay more taxes instead of investing in a quick way out of the crisis of the coronavirus, "he says.
Autonomic differences
This Fiscal Liberation Day it does not fall in the same exercise in all regions. In each autonomous community, due to its internal conditions, it is different.
In Catalonia, the region with the highest data, this date does not arrive this year until July 5; in Cantabria, on July 2; in Castilla-La Mancha on July 1; in the Valencian Community and Navarra, on June 30; and so on, from the top.
The capital, meanwhile, will arrive on this day on June 27. And below are autonomies such as Ceuta and Melilla (June 23), Murcia (24), La Rioja (25) and Andalusia and the Canary Islands (26).
