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Spain: Raising Taxes on the “Rich”

The United States is not the only country attempting to “soak the rich” in order to pay its bills.  The United Kingdom has also regrettably moved in that direction, and now Spain has indicated that it too will raise taxes on high-income earners.  The Financial Times writes, “Spain’s cash-strapped Socialist government is poised to emulate the UK and increase taxes on the rich, reversing its policy of tax cuts…”

With unsustainable budget deficits, the Spanish government has decided that it’s easier and more politically expedient to plug the gaps with tax hikes rather than unpopular spending cuts.  Sound familiar?

Charles Sizemore, CFA

Co-author of the recently-published Boom or Bust: Understanding and Profiting from a Changing Consumer Economy