The agreement for a progressive Government, the document you have prepared PSOE and United we Can, undertakes to regulate the price of rents, build social housing and sets out a state plan for rehabilitation. The agreement also contains a package of fiscal measures to raise taxes on the highest incomes and the multinationals.

PSOE and United We may remark, in the document of 51 pages, their commitment to the fiscal rules from Brussels. "We will develop a responsible fiscal policy that guarantees the fiscal stability and the reduction of the deficit and the public debt", stresses the document. With this paragraph, both parties have wanted to launch a message of stability to the community authorities and to investors who might view with suspicion a pact between the two forces of the left.

Commitment to the fiscal rules european

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The arrangements for the investiture of Pedro Sanchez, the last time in direct PSOE and United we Can will be raising taxes on the rich and go beyond what is foreseen in the labour reform

To comply, the next executive will have to approve new measures of adjustment for the approximate amount of 9,000 million. Both PSOE as we Can to escape the cuts in public spending and the austerity policies that fired the inequality during the crisis. So the way that mark is that of tax hikes. "We will strengthen the progressivity of the tax system and the adequacy of the public revenues, by reducing the differences with the european average", they argue.

To obtain more resources with which to cover the new measures of spending and embridar the red numbers, the progressive forces propose tax increases on the highest incomes, the multinationals and the creation of new taxes for which the technological and the financial institutions pay more. It will also promise a greater effort in the fight against tax fraud, a measure wildcard that is contained in all the electoral programs, but then it's difficult to quantify their results.

income TAX: climb to 0.4% of contributors

In the fiscal package highlighted the increase of the personal income TAX for incomes in excess of 130,000 euros. The measure is a little harder than expected in the agreement of Budgets signed by both parties a year ago. The socialists lead time mulling over this measure. Were raised, even, to dismiss this tax hike, but after the new covenant we Can go into the climb by lowering the limit from which they will apply the rise of 140,000 euros to 130,000 euros.

"Are increased two points the tax rates on the general basis for taxpayers with income above 130,000 euros and four points for the part exceeding € 300,000. The type state on income from capital will increase by 4 percentage points for those income above 140,000 euros", says the document.

The measure will only affect about 0.4% of the interviewees, according to sources knowledgeable of the covenant of the Government to amount to some 80,000 taxpayers affected. However, according to the Memory of the Tax Administration, only 143.797 taxpayers 19.621.728 who filed the declaration in 2017 confessed income above 120,000 euros.

corporation Tax: the climb to 0.7% of companies

Both left-wing parties also undertake to raise taxes on big companies. The goal is for the multinationals to pay a minimum of a 15%. "Shall be reformed by ensuring a taxation minimum of 15% of the large corporations, which would be extended up to 18% for financial institutions and oil and gas firms," says the document. The Finance minister on functions, María Jesús Montero, said some months ago in this newspaper that the measure, which was already included in the Budgets of 2019 that did not go ahead, would only affect about 10,000 companies, 0.7% of the total. "Only the tax on societies, one-third of the businesses of this country. Of these, one out of every four are going to lower taxes. And only 0.7%, which are around 10,000 large corporations, are the ones that will be affected by the measures. That is to say, 99.3% of the companies that are taxed in societies will not have affected your ability to pay or the will be diminished", he said.

The document also explains that the "limited exemptions for dividends and capital gains of companies for their participation in other societies, reducing in 5% the aforementioned exemptions, in respect of non-deductible expenses in the tax, participation management, which maintains the array in the subsidiary, as expected, and allows the parent-subsidiary Directive".

in Addition, it will reduce the corporate tax for small and medium-sized enterprises (smes). Companies that invoice less than one million euros will be taxed at 23% instead of the current 25%.

Limit the rental price

The text promises to “promote the measures necessary” to put limits on rentals, an issue that has already created debate between podemos and the PSOE in the negotiation of a final decree on housing. The agreement proposes to use the price index official that is developing as the Ministry of Development and enable Autonomous Communities and city Councils use the statistics to develop your own. The city Councils “will be able to declare objective and based on technical criteria, on a temporary basis and exceptionally” areas under tension. This would imply that the rents in those areas could not upload more than set down in the regulations.

In the budgetary pact that reached the Government of Pedro Sanchez and we Can do something more than a year already covered the development of official statistics to cap the rents of certain areas. The decree passed last march was half way to deploy the elaboration of the statistic, but without changing the article 17 of the Law of Urban Leases (LAU), which provides that the income from the rentals the agreed freely by the parties. We demanded to change it, something that apparently must be made now to allow the price limits, a pathway that has already been experienced in some territories and cities of Europe and USA.

The text of the covenant points out that the crisis and “a bad planning policy” are behind the problems of many citizens to access the housing. To solve this he proposes, in the first lugar, to expand the budget dedicated to housing policies. Also bet by putting in place a State Plan for the Rehabilitation of Dwellings, which will aid small owners to renovate their flats and put them in affordable rent. That plan will include works to improve the energy efficiency of homes, and the document specifies, moreover, that the companies “will also benefit” through programmes of financial support to adopt more efficient technologies.

More public park

PSOE and We have also proposed to define the concepts of empty dwelling, and large fork housing, something that some communities already included in its regulations. To these and to the municipalities will be provided with “different tools for detection and diagnosis”. The aim is to apply “the most appropriate measures: tax, law, assurance or encouragement” to those flats and houses back into the marketplace. The housing, public protection will be oriented exclusively to the rental “avoiding that is to be sold or exploited by vulture funds”. To increase the park of public housing and of social rented benefited the conventions of Sareb (the so-called bad bank, which absorbed a large part of the brick toxic from the bench) and will be stimulus measures of the rental and the construction of new floors “promoters of public and private”.

The document also includes the “relocation immediately,” tenants who are evicted from their homes because they are in a vulnerable situation and can't pay the rent. In the case of the people that have been evicted for non-payment of the mortgage, they will help you find a rental social. For these cases “will be considered obligations additional to the large holders of housing” and establish “new legal measures to strengthen the protection of people with mortgages”.

Also, “will boost the Observatory of housing” to “investigate and analyze the housing situation in Spain”, to approve “a strategy that addresses the problem of sinhogarismo” and “promote regulatory reforms” to facilitate that the communities of neighbors to be able to prohibit the touristic rentals, something that currently can be done with the agreement of three-fifths of the owners.

Date Of Update: 30 December 2019, 17:00