If we continue at this rate and with the same political model, the issue is clear ... Who will pay the taxes in this country?
Based on “Cambios en la estructura y localización de la población. Una visión a largo plazo (1842-2011)”, a report on the structure and location changes in the Spanish population between 1842 and 2011, the greatest population growth in Spanish history took place between 2001 and 2011, increasing by approximately 6 million inhabitants.
Demographic data show that we are facing an impending ageing of the population, which is considered as a characteristic of developed societies. Moreover, they conclude that, in year 2060, there will be more people over 80 than young people. One of the serious consequences of an ageing population is the sustainability of public expenditure on pensions, health and education, among other examples.
This ageing of the Spanish population involves a great challenge and requires a reform of the current political and budgetary project.
Apparently, an increase in the number of people who pay the Spanish Social Security contributions would help to solve this problem. It is true that the percentage of employees who contribute to the Spanish Social Security system has increased. However, it should be noted that salaries are lower and precarious and, consequently, contributions are also lower.
| So, the question is: will taxes be increased in order to keep that system working, as usually? |
Honestly, I wonder if the so-called ‘mileuristas’ (people who earn around €1,000/month) will have the economic capacity to face the payment of taxes and to ensure the sustainability of our pensions and the public spending...
A fascinating question.
ReplyDeleteIn the UK one solution has been to raise the official retirement age to 68 and possibly higher later in the century.
There has also been a cap on social spending, although benefits for retired people are still set to rise.
The issue of the tax base is not under such active discussion but the UK will have a similar demographic profile.
It looks as if the bulk of Income tax is paid by the very highest earners. I'd guess the same is true in Spain, so Governments must hope this does not change!