The article discusses how the refusal of Spain’s Prime Minister Pedro Sánchez to adjust income taxes for inflation has led to Spanish citizens paying an average of 2,073 euros more in taxes. This situation is explained in a report from the Juan de Mariana Institute.
Inflation in Spain has risen significantly, with prices increasing by over 21% since Sánchez took office, and even higher in areas like food, which saw a 37.9% increase. In contrast, during the previous government led by Rajoy, inflation was much lower (7.2%).
The report highlights that while salaries have increased by about 22%, when factoring in inflation, the real increase in purchasing power is only about 2%. Thus, most of the salary increases are being absorbed by rising prices.
Additionally, the decision not to adjust income taxes for inflation has negatively impacted workers’ purchasing power, resulting in an estimated loss of 1,410 euros per average worker. This effectively means that the burden of rising taxes has reduced the benefits of any salary increases, leading to a 123% tax burden on the potential salary improvements that could have been realized if prices had remained stable.
