The Wall Street Journal

Spain Unveils Sweeping Cuts on Income, Corporate Taxes
The Wall Street Journal

Spanish leaders who broke their no-new-taxes pledge after taking office 2½ years ago announced sweeping tax cuts on Friday, saying it was time to compensate a recession-battered populace for its sacrifices and boost a nascent recovery.

Budget Minister Cristóbal Montoro, announcing the government’s main economic initiative of the year, said the planned reductions of income and corporate taxes will stimulate investment, creating jobs and making Spanish companies more competitive abroad.

They will also put more money in the pockets of consumers as the ruling, conservative Popular Party moves toward elections, which are expected as early as the end of next year.

Spain’s corporate tax rate would drop from 30% to 25% by 2016. People earning more than €300,000 ($408,000) a year would see their personal income-tax rate fall from 52%, one of the highest in Europe, to 45% in 2016.

Those earning less than €12,450 a year would pay 19% in 2016, compared with 24.75% now.

Les Espagnols ont fini par comprendre. Peut-être que le Québec sera un jour assez allumé pour faire de même…