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Editorial: El País

  • The increase in the Minimum Interprofessional Salary (SMI) has created a crisis within the Executive.
  • The Minister of Labor, Yolanda Diaz, opposes the Treasury's decision to tax the recipients of the SMI.
  • The Government has not adapted the income tax despite the increase in the SMI, revealing an internal division.
  • The Ministry of Treasury defends the measure arguing that the increase of the SMI has led to more citizens receiving it.
  • Despite the criticisms, the withholdings will only apply to 20% of the workers who receive the SMI.
  • The Spanish tax system is one of the least redistributive in the EU and the tax pressure in Spain remains comparatively low.
  • The Government missed the opportunity to discuss an integral fiscal reform and the tax system remains unfair for mid-low incomes.

Conclusion: The internal crisis in the Government over the increase in the SMI and its taxation highlights the need for comprehensive tax reforms to achieve a fairer tax system.