The Spanish government of prime minister José Luis Rodríguez Zapatero finally got smart and implemented a new tax plan yesterday, which will raise taxes on the rich with a new asset-based tax. Oddly, Zapatero abolished the self-same tax plan just before the recession, but now obviously realizes how much money Spain is losing because of it, with the country suffering economically while the rich are simply allowed to get richer.
Spain’s socialist government estiimates the new tax plan will bring in around €1 billion a year in new revenue, money desperately needed by Spain whose economy is still in the doldrums and whose unemployment rate is one of the highest in the world.
The new tax plan will be implemented for Spaniards who own real estate worth more than €700,000 – excluding their primary residence. The government estimates it will affect around 160,000 people.
“The economic crisis makes it necessary to bring this tax back, applying principles of fairness so that those with bigger assets can be taxed and so those who have greater wealth can contribute more to getting the country out of the crisis,” a finance ministry statement said yesterday.
Good for the Zapatero government. It’s about time the rich paid their share.