The tax cut at low and middle income much vaunted by the Government will have a very limited impact in practice: all those who earn more than 1,200 euros per month (approximately) will not receive any type of benefit. Hence the increase in collection esteemed by himself Treasury It will be very limited, 1,881 million, while the increases and new taxes announced this Thursday will raise the State’s income by 5,643 million.
The 21,000 euros gross to which the reduction for work income in the personal income tax they translate into an average of 1,205 euros net per month (in 14 payments) or 1,455 euros (in 12 payments); These amounts vary depending on the age of the worker, whether he has children and other circumstances.
In this way, the number of taxpayers who can benefit from this measure is greatly limited, although, being wages so low, their impact may be appreciable for some of them. Experts consulted by this newspaper estimate that the annual savings in personal income tax for the beneficiaries can be around 200 euros. Treasury did not offer estimates of said impact.
This measure, the option chosen by the Government as OKDIARIO had advanced, implies raising the amount that can benefit from the aforementioned reduction from the current 16,825 euros (although the minister Maria Jesus Montero said yesterday 18,000, in the personal income tax of 2021 the aforementioned 16,825) were applied up to 21,000. The Treasury did not give details yesterday of how this reduction is going to be applied, nor did it clarify whether the current amounts are going to be maintained (a maximum of 5,565 euros), nor if that amount is going to be reduced from a certain salary -up to cited 21,000 euros-, as is currently the case.
Treasury kept 43%
What the measurement will achieve, together with the elevation of the exempt minimum to declare in personal income tax at 15,000 euros, is to avoid the drama that taxpayers suffered until now who are they raised the salary from 14,000 to 15,000 euros. In that case, being already subject to the tax and with the system in force until now of the reduction for work income, the Treasury kept 43% of the salary increase (430 euros). A marginal rate typical of the highest incomes that was applied to the lowest, in a flagrant contradiction of the progressiveness that this tax is supposed to have.
Now this drama will continue to exist, but it will affect workers with somewhat higher salaries. At the moment, it is impossible to know who specifically until the details of the new measures are known, which will be included in the State’s general budgets.
