Spain mustimprove the efficiency and progressivity of your tax systemand adopt measures to reduce the duality of its labor market, for which the Organization for Economic Cooperation and Development (OECD) recommends taxing more fuels to better reflect its environmental impact, as well as bringing the costs of contract dismissal to a greater extent temporary and indefinite.
In its report "Bet for growth 2019", the institution led by the Mexican Ángel Gurría points out theincrease in inequality registered in Spain since 2007, warning that it is still above the OECD average, partly as a consequence of the high level of unemployment and the fall in income of the poorest households.
The Paris-based organization says thatboost inclusive growth in Spainit will depend on a greater increase in employment and productivity, highlighting that the increase in productivity can be raised by changing the tax burden to less distorting taxes, reinforcing competition, strengthening educational results and boosting innovation performance.
In this sense,the OECD recommends "improving the efficiency and progressiveness of the tax system", broadening the tax base by reducing exemptions and abolishing reduced VAT when it is regressive.
Likewise, the 'Club of developed countries' advises the Government to raise taxes on fuels to better reflect the impact on the environment of CO2 emissions. On the other hand, the OECD proposesreduce social contributionsby employers in the case of low-wage workers who are hired indefinitely.
Regarding the labor market, the organization emphasizes the need toreduce the existing duality, for which raises the importance of "pursuing a greater convergence between the costs of temporary and indefinite dismissals", in addition to persevere in the fight against the abuse of temporary contracts.
On the other hand,OECD reportIt is committed to reducing regulatory differences between regions and regulatory barriers to the growth of companies, eliminating regulations that depend on the size of companies.
Likewise, the OECD insists onimprove the results of the education system,In this regard, he recommends improving the quality of education through better university training and in jobs, while demanding improvements in relation to spending on innovation, as well as in research and development, where he raises the need to reassign the funds in part from credits to grants based on performance.
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