Tax reform row starts political musical chairs
18 May 2006, MADRID — A political row over controversial tax reforms has ushered in a change in allegiances for the ruling Socialist party.
18 May 2006
MADRID — A political row over controversial tax reforms has ushered in a change in allegiances for the ruling Socialist party.
Traditional allies of the government have deserted the Socialists over its plans to reduce the top rate of tax and the number of tax bands.
A bill which will cut the number of tax bands from five to four and reduce the top tax band from 45 percent to 43 percent had its first reading in parliament.
It will also cut corporate tax from 30 percent to 25 percent.
The government has also introduced measures to help lower and middle-income families and claims the cut in corporate tax cut will aid the economy.
But the government has had to count on the support of the Right-wing Catalan regional party CiU, instead of allies like the United Left and the Left-wing Catalan party ERC.
The Left claim the bill favours the wealthy and does not help to bridge Spain's growing income divide.
[Copyright EFE with Expatica]
Subject: Spanish news