Spain raises taxes on the rich

[alp227]

Source: The Guardian

Spain today became the latest European country to hike taxes on the wealthy, with a new asset-based tax targeting the country's richest people.

Spain's socialist government hopes that the new wealth tax will raise up to €1bn in a country where growth is grinding to a halt and this year's 6% deficit target looks increasingly tough to meet.

The move represents a U-turn for prime minister José Luis Rodríguez Zapatero, who abolished a similar wealth tax in 2008 — just before the country plunged towards recession.

"The economic crisis makes it necessary to bring this tax back, applying principles of fairness so that those with bigger assets can be taxed and so those who have greater wealth can contribute more to getting the country out of the crisis," a finance ministry statement said.

Read more: http://www.guardian.co.uk/business/2011/sep/16/spain-raises-tax-on-rich

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In other news, US Republicans seek more and more tax cuts for millionaires and billionaires while sticking the rest of us with the bill.

[dkf]

1. "Spain's wealthy largely avoid income tax, with only some 7,000 people declaring annual taxable

income above €600,000."

It's the exemptions!

[DLnyc]

2. How would that work here? Pretty well, I think.

A quick look at this wiki page: http://en.wikipedia.org/wiki/Wealth_in_the_United_States and some rough calculations say the top 1 percentile in the US has a net worth of around 17 trillion dollars (2009, probably more now). So a 3% tax on net worth (not on income) would yield around 510 billion. Seems like that would pay for Obama's job plan (or even a better plan that just directly provided jobs) without raising a sweat.

Great idea. So I guess that means it could never be done here.

[pam4water]

7. Sounds like a plan!

[reformist2]

19. And the total net worth of the country is $50 trillion. And they said we were broke!

[sam11111]

27. 154 Trillion link to Fed site source see my reply several on below.....

Where did u see just 50? Big error!

Cordially
Your pal
Sam

[reformist2]

28. That's total assets, not net assets.

Financial assets + non-financial assets - financial liabilities = Net Assets.

[sam11111]

29. no that is "total liabilities and its relation to total assets" = Net assets

So I seem to read it

Comments?

[reformist2]

30. Here's the right page to look at for Net Worth.

http://www.federalreserve.gov/releases/z1/Current/z1r-5.pdf

I was wrong. The net worth of the US is north of $58 trillion (at least before the recent dip in the stock market).

[sam11111]

35. STANDBY whilst we sort this out. but even lowest no. is easily able to pay 15 T debt

Good input fm others invited also. Be polite.

[valerief]

22. Does the net worth include all their hidden offshore money? nt

[wordpix]

36. +1 and while we're at it, let's stop giving the wealthy the Medicare and Soc. Sec. benefits

they so abhor

[bluestateguy]

3. They had three years to create jobs with those tax cuts

They chose not to do so.

SO, they get to pay higher taxes now.

[HughBeaumont]

8. Uh . . . TEN.

And it's resulted in THIS:



Ouch! That's gotta hurt, Trickle Down! The three worst performing economies were all laissez-fail Friedman environments, the absolute worst being a pure let-the-rich-off-easy Hindenburg joyride under Bewsh. At least Clinton & Reagan knew you have to raise taxes to keep debt under control (Reagan just raised them on the wrong people).

The Democratic Way of progressive distribution . . . far better for your country!

Expire those tax cuts and do it NOW, Washington.

Who am I kidding .. . those things were permanent as soon as they were enacted . . .

[Dragon Turtle]

11. He was referring to Spain's taxes

From the article: The move represents a U-turn for prime minister José Luis Rodríguez Zapatero, who abolished a similar wealth tax in 2008 — just before the country plunged towards recession.

[Sirveri]

13. More like 30 since Reagan chopped the top from 70 down to ~28.

Over the course of the 8 years of his presidency.

[L. Coyote]

16. The turning point was Junta Day 2000!

[tcaudilllg]

4. Asset taxes are the best!

Make them pay for their crimes where it hurts.

[earcandle]

5. Hooray for Common Sense, and a Prime Minister who knows how to run a country!

[Firebrand Gary]

6. Socialist.

[PuffedMica]

9. The dam breaks. Let's hope all western governments follow stopping wealth accumulation by the top 1%

There needs to be a more equatable distribution of wealth in order for our society to function.

[sam11111]

10. 154 trillion is what they have here

Middle class has zero after u subtract wealth from debt.
Lower has zero.
So upper has whole amount in title. Right?

Poverty should not exist in this land.
Source---

Federal Reserve Statistical Release, Z.1, Flow of Funds Accounts of the United States

Table L.5 Total Liabilities and Its Relation to Total Financial Assets

(my comment - see bottom line, next to rightmost cell for current wealth of the US in billions. You will see 6 digits so that gives 3 digits worth of trillions - that is, over a hundred trillion. To be more precise, 154 trillion as of my writing this in Aug '11. Got that?)

http://www.federalreserve.gov/releases/z1/Current/accessible/l5.htm

[DrunkenBoat]

15. Any source for your comments on the lower/middle classes?

[sam11111]

26. 26 000 NET debt middle class family. lower class simply "zero wealth" forever is recollection dont

Recall source other than it was not recall tinged with "dubious source" on it.

Let us know what u find.

[DrunkenBoat]

34. "Let us know what u find." ? Your claim, you find.

[wordpix]

37. huh? no i didn't get it

[annabanana]

12. Lets follow suit and leave tham noplace to "go" with their trillions

EXCEPT Somalia, of course.

edit "trillions" not billions

[dpbrown]

14. If every country raised taxes on the rich a little bit, then there'd be no 'wealth flight'

The rich are poisoning our systems world wide by their concentration of wealth.

[femrap]

17. Good for Spain! nt

[reformist2]

18. The headline should be "Spain brings back WEALTH TAX"

There's a huge difference between taxing somebody's income and taxing their net worth. This is a great development.

[KansDem]

20. They had their heyday...now it's PAYDAY!!!

:grr: So pay up, leeches!!!

[davidwparker]

21. Good of them. n/t

[Vidar]

23. Bravo, Spain!

[unkachuck]

24. since the rich....

....with their insatiable appetite for greed have destroyed the worlds' economy and rendered millions of people homeless and penniless, it's only befitting that these slimy bastards come along with us on the economic ride to the bottom....

....dig deep boys, hooray for Spain!

[defendandprotect]

25. Now there's a sane thought -- !!! Progressive taxation -- !!! Let's go -- !!

[and-justice-for-all]

31. I like the 'We are not going to ask or debate it....

we are just going to do what needs to be done.' attitude.

[Politicub]

32. Watched this as it happened, in Spain

On vacation last week. It was an amazing news story in that it represented a sane approach to tax policy.

The contrast with the kid gloved handling of the rich in the US was astounding. I thought to myself that our elected officials would never do something as straightforward as raise taxes on the rich.

[sam11111]

33. 90% was Ike's rate. Truman 94% for awhile. About 90% all thru '45-'68 Golden Age of middle class

So I read on DU.

Pls post tax graph someone.