Tax system and reforms in Europe: Spain
AbstractThis paper aims at discussing the main features of Spain’s tax system, its recent reforms and those underway. The current state of the main taxes, their future reforms are studied starting from 1975, when Spain shifted to democracy. Direct taxes, indirect taxes and social security contributions are compared with the European average, trying to focus on the major changes from 1975 to 1999. The structure of the main taxes is surveyed, showing the recent reforms and the differences with the previous system. The analysis goes on observing the evolution of the tax burden from 1975 to 1997, looking at progressivity of the tax system, at the redistributive implications. Moreover, in this paper we analyse the process of fiscal decentralisation and the tax wedge in corporate and labour taxation. Finally, after a brief overview of the macroeconomic and budget framework, the paper assesses the fiscal reforms that have taken place during 1990s. The aim of these reforms was a more neutrality of the tax system and a reduction of disincentives to labour force participation, in tandem with an offset increase in VAT rates. Actually, the main tax reforms guidelines are a further reducing of the tax burden on labour, a promotion of tax neutrality across saving instruments and corporate tax regimes, and an improvement of decentralisation.
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Bibliographic InfoPaper provided by EconWPA in its series Public Economics with number 0511003.
Length: 32 pages
Date of creation: 03 Nov 2005
Date of revision:
Note: Type of Document - pdf; pages: 32. Paper later published in the book “Tax system and tax reform in Europe”, by Paola Profeta e Luigi Bernardi (editors), Routledge, London, 2003.
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Taxation – Spain - Tax reform;
Other versions of this item:JEL classification:
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
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