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Spanish millionaires should temporarily make an extra contribution against rising energy prices and pay higher taxes. Prime Minister Pedro Sánchez said on Friday: “We are proposing a redistribution among those who have the most to finance the welfare state that belongs to everyone.” One percent of the population who are among the richest people in the country are affected.
Finance Minister Maria Jesus Montero emphasized that only millionaires were affected. The expected higher tax revenues would be used to alleviate the plight of those suffering from high energy and food prices. Details on the exact amount of the measure are still being worked out, according to the government. The inflation rate in Spain reached 10.5 percent in August.
While Sánchez's Socialists are in favor of a temporary tax hike for millionaires, her coalition partner Unidas Podemos is in favor of a permanent solution. The top tax rate from an income of more than 300,000 euros per year is currently 47 percent. The highest rate of capital gains tax is 26 percent.
