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Spain, Seeking New Revenue, To Reintroduce Wealth Tax

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http://www.nytimes.com/2011/09/16/business/global/spain-seeking-new-revenue-to-reintroduce-wealth-tax.html?_r=1&ref=business

MADRID — The Spanish government was planning to re-introduce a wealth tax Friday that it scrapped just three years ago, as it scrambles for ways to reduce the budget deficit and avoid becoming the next victim in the European sovereign debt crisis.

Elena Salgado, the finance minister, detailed the tax shortly after Spain pulled off a successful — if expensive — bond sale Thursday. She estimated that the tax could yield about €1.08 billion, or about $1.5 billion, in additional revenue from some 160,000 of Spain’s richest taxpayers, those with more than €700,000 in declared assets.

In 2007, the last year that the wealth tax was collected, revenue from the wealth tax reached €2.12 billion, after more than 900,000 people were charged between 0.2 percent and 2.5 percent of their declared assets.

Panic setting in....

Too little too late.

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Good luck getting that through...

Its reintroduction is likely to be the last legislative measure taken by the Socialist government before a general election on Nov. 20.

Quite

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Canary Islands - 15.09.2011 - The Canaries' long-term rating has been cut by one notch to AA- as a result of fears that the government's austerity programme may not improve the islands' debt perspectives. In its revised rating issued yesterday, Fitch draws attention to the 'deterioration in the already fragile emplopyment indicators' and 'declining but still large overall budget deficits'.

AA-

Spain's gonna get trashed......

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Canary Islands - 15.09.2011 - The Canaries' long-term rating has been cut by one notch to AA- as a result of fears that the government's austerity programme may not improve the islands' debt perspectives. In its revised rating issued yesterday, Fitch draws attention to the 'deterioration in the already fragile emplopyment indicators' and 'declining but still large overall budget deficits'.

AA-

Spain's gonna get trashed......

How can some barren volcanic islands full of tourists 365 days a year have debt issues? Nuts.

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What it comes down to is the rich either share the wealth or they will lose the lot- their IOU's are only as good as the economies they reference. We may all go down but the rich have a lot more to lose than most of us-literally.

The recent spate of wealthy people calling for more taxes on wealth represents their dim apprehension that the top of the food chain is the weakest position to be in when that chain begins to fail.

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What it comes down to is the rich either share the wealth or they will lose the lot- their IOU's are only as good as the economies they reference. We may all go down but the rich have a lot more to lose than most of us-literally.

The recent spate of wealthy people calling for more taxes on wealth represents their dim apprehension that the top of the food chain is the weakest position to be in when that chain begins to fail.

Only problem with a wealth tax is that just like an inheritance tax it is v.easy to avoid.

Presumably most of it is collected from those unaware of it

Take for instance if you wish to put a 1% tax beyond 500k.

Well for a start a family can spread the wrath so for a family of 5 it becomes 2.5m

Apart from that its easy to hide wealth. Be it a gold bar. Cash. Or just an offshore account. Or just simply leaving.

After all if you had 1 billion & a 1% wealth tax was.introduced I doubt you would want to stay in a country that charges you 10m a year when there is a hundred who.would.charge you zero

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Its reintroduction is likely to be the last legislative measure taken by the Socialist government before a general election on Nov. 20.

Amazingly people must still vote to encourage them.

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What it comes down to is the rich either share the wealth or they will lose the lot- their IOU's are only as good as the economies they reference. We may all go down but the rich have a lot more to lose than most of us-literally.

I think you are way over optimistic .

They can protect their wealth via the State. If people strike they won't be able to put food on the table and immigrants will be brought in to replace them (this happened during the refinery strikes). If they steal to sustain themselves they will be put in jail (bottle of water anyone?). If more jails are needed they will be made to pay for their construction (the rich don't pay taxes). Etc. The system is already in place.

There is absolutely nothing to suggest that the elite could in any way be credibly threatened by a popular uprising.

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Apart from that its easy to hide wealth. Be it a gold bar. Cash. Or just an offshore account. Or just simply leaving.

After all if you had 1 billion & a 1% wealth tax was.introduced I doubt you would want to stay in a country that charges you 10m a year when there is a hundred who.would.charge you zero

Bingo, the wealthy are not taxed. A lot of them these days just make money from overseas investments the profits from which are not taxed. There are many ways they can bring this money into their country of residence without being taxed.

When I make my online business in future, transactions will be settled internationally and I won't have to pay any tax to anyone no matter how much I make :ph34r:

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  • 337 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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