Lower Taxes: An Alternative to Revive the Economy

Given the current economic outlook and after confirming the inmediatarecesión of international trade and the contraction of the first economies in the world, our politicians should consider different contingency plans.

The model proposed by Gordon Brown: Lowering the tax rate

Economy Minister Alistair Darling is considering reducing the tax rate of VAT (Value Added Tax) of 17.5% to 15% to revive its economy together an aid plan to provide liquidity to the companies.

It creates a precedent that can possibly be supported by other economic ministers of the countries that are part of the renamed G20 G23.

However it is noteworthy that before the present fiscal deficit countries such as Spain, USA, and Italy the subsidy or tax relief through tax reduction or tax rate can be counter-productive. We must revive the economy by encouraging companies certainly missed but now after a decade in some cases financial and economic prodigious do not have equity or budget agreed to address measures as necessary.

Another option proposed that in some cases already met is to encourage only those business sectors that satisfy various requirements such as: respect for the environment, improving competitiveness and productivity of the member, or to invest in added value.

Spain: One example of partisanship and lack of consensus on the anti crisis

Regardless or analyze nationalism and identities of each territory in regard to fiscal policy to stimulate the economy in our country we see different points of view and fiscal measures that adversely affect the macroeconomic environment for its lack of uniformity and balance.

Taxes as relevant as the corporation tax or wealth created constant disputes and discrepancies in different regions has meant that as an autonomous community in which we find substantial differences to settle taxes of vital importance in an economic activity, the acquisition of assets or even transmission properties.

Although the tax court from which much of the collection (VAT) is the state, in many cases each autonomy regardless fiscal policies that benefit or harm the business sector.

Analyzing only the current economic situation we must demand that encourages consensus and unity to pursue a uniform and consistent fiscal policy. Tax as Corporate, Heritage, Property Transfer and Succession, gifts are essential in a contingency plan to help anti solve crisis next year. Hopefully the common good prime the fiscal deficit.