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The two sides of the fiscal policy to pay the coronavirus "Bill”

| COVID-19 / News | Tax

Miguel Ángel Galán explains that the objective is not to asphyxiate companies and self-employed people, as these must be the ones to make the country recover, in ABC

With more than 100,000 people infected and already past the 10,000 dead mark, Spain faces an uncertain economic future. The light at the end of the tunnel is so dim that it can hardly be seen. Everything will depend - say the experts - on how long the economic standstill and the state of alert last, both linked to the health emergency. However, the need to think about what will happen when all this is over is no less certain; the day when the country can go out onto the streets to work, to walk, to fill the bars, to see shows once again... and here the Government has in its fiscal policy one of its main mechanisms to make the fall as hard as possible and pay the economic "bill" in its fiscal policy. Because, to date, Spain - and the other Member States of the European Union - is relatively alone in the absence of the badly named Community "Marshall Plan" that certain political leaders are already demanding.

"The government has put guarantees on the table, but not money.  The money is provided by the banks. All of this suggests that we do not have enough financial resources," says Miguel Ángel Galán, a partner in the tax department at Andersen Tax & Legal.

Galán mentions that the way forward may lie in reforming Income Tax, Corporate Tax and VAT, although this will also create problems in the event of tax increases since, he says, we have little or no margin. The objective: not asphyxiate companies and self-employed people, who must be the ones to make the country recover.

You can read the full article in ABC.

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