Week 158

Page 1

Edition 158

www.thecourier.es

Friday, February 28, 2014

HAPPY DAYS ARE HERE AGAIN

Bullish Rajoy in economic boost By ALEX TRELINSKI More jobs and lower taxes were promised by the Prime Minister, Mariano Rajoy, during a big debate in the Spanish Parliament which focused on the state of the economy. With a General Election taking place before the end of next year, Rajoy pledged to scrap income tax for the less well off in 2015, and increased the predictions of economic growth. The Spanish leader’s speech seemed to go down well with the voters, with two national opinion polls rating him and the ruling Partido Popular comfortably ahead of his Socialist rival, Alfredo Rubalcaba, based on their performanc­ es in the chamber this week. The Prime Minister said that Spain had turned a corner and was "part of the driving engine" of Europe, adding that economic growth forecasts for this year have been up­rated to 1% and to 1.5% for 2015. Rajoy claimed that the recession was over and that the emphasis would be on “positive” growth. Rajoy also pledged to slash tax, promising that taxpayers earning under 12 thousand Euros would not have to pay income tax from 2015, irrespective of whether or not they have dependent

children. The minimum taxable thresh­ old is to be increased for the disabled and those with dependent children, and Rajoy pledged additional aid for low­ income families – although he was 'unable' to give any further details. People earning 20 thousand Euros would also get a reduction, which apparently means that 12 million of Spain’s 17 million taxpayers will see more money in their pockets. Some economists commented that there was little difference between Rajoy’s pro­ posals and the actual tax structure, as

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currently workers who earn 11,162 Euros a year don’t have to pay taxes. “About 97 percent of the workers who earn 12,000 Euros a year already don’t pay taxes and the rest pay less than 300 Euros,” said Santiago Díaz de Sarralde, an economics professor at King Juan Carlos University. In other measures, contracts for new staff at all firms will carry a flat rate of 100 Euros a month in Social Security payments made by the employer on

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