Tilting At Windmills

By Global Tax Weekly

Spain’s Rajoy has promised income tax cuts in 2015, so half a cheer for him for at least talking the talk. But will he walk the walk? Perhaps more credibly, the Finance Minister would only say that he is not planning a VAT rise “for now.” If they weren’t politicians, they wouldn’t even begin to consider lowering taxes at this moment in history: the deficit for 2013 was probably just over 6 percent, while debt was 84 percent of GDP in 2013 and is expected to rise to 94 percent in 2014. While these figures aren’t as catastrophic as those for Greece (and Italy’s debt stands at 135 percent of GDP and rising), they are quite frightening. What they ought to do, of course, is to cut public spending, even though that would increase already massive unemployment (26 percent). But you must be getting bored of hearing me say that governments should cut spending, not because I’m wrong, but because it’s flogging a dead horse. Of course what I really want to say is that they should leave the euro, but that is even less realistic: even Don Quixote stopped short at tilting at windmills. Not that it’s in the hands of the Spanish Government in the first place – it’s the Troika, stupid. And the only medicine the IMF knows about is an ointment called “taxincreases.” That’s why the Finance Minister is dutifully considering a VAT increase: rub on all over areas of exposed skin, it says on the tube, and wait. If the patient hasn’t expired after three months, repeat the treatment until death occurs.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>


Ireland Announces New COVID Measures

In Ireland, which is currently stepping back up the COVID restriction ladder, the Government announced changes to the Employment Wage Subsidy Scheme (EWSS) and...

Poland Ponders Corporate Tax Reform

Two bills currently before Poland’s parliament would bring about sweeping changes to the country’s corporate tax rules. Some of the proposed changes were consulted...

Australia Announces Budget Measures

The Australian Government announced in its Budget that it would be bringing forward personal tax cuts that had been scheduled for 2022.

The Australian authorities...