At the request of the Socialist candidate, Alfredo Pérez Rubalcaba, the Executive Heritage reinstate the tax, as announced by Elena Salgado.

The government headed by José Luis Rodriguez Zapatero approved today by the Council of Ministers Heritage Tax refund, as announced by the Government Financial Vice President, Elena Salgado, the Executive Committee of Economic Affairs. This new tax will come into force despite that for months, the maximum responsibility in economic affairs came ensuring that the tax increase was not within the Executive’s agenda. The measure will affect taxpayers who have an estate over 700000 euros and will be temporary for the years 2011 and 2012.

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What is the Heritage Tax?

It is a tribute created in 1977, but held in the Law it amended in 1991, which taxes net worth individuals. Is justified by the economic principle of equity, which is who most should contribute more money into the development of society.In fact, this figure tax was not repealed in 2008, because the Government simply to reclaim all the tax base. This means that, technically, the tax remained in effect (especially as a mechanism of control of property taxpayers) and all it does is restore the government now.

For the settlement of the tax, compute the value of all property and rights of the taxpayer (homes, cars, jewelry, art objects and antiques, all income, savings, intellectual property), net of debts and charges. Calculated the tax base exempt amount is subtracted (300000 euros for the main residence, for example) and you get the tax base. The tax payable is calculated by applying the tax rate to taxable income. Finally, the tax liability to pay is the result of subtracting bonuses and regional or state deductions to the tax payable.

Neither Elena Salgado nor any other member of the Government has offered any figures on the applicable rate, although there is talk of numbers ranging from 1% to 2%.Tax collection is assigned to Heritage Autonomous Communities, Which have the power to collect it, modify it or subsidized.

A tax for the middle classes

Be affected taxpayers who have an estate over 700000 euros, although the residence will be exempt at 300000 euros. It is believed to be affected between 150000 and 200000 people. Since the Government’s objective is to raise about 1.08 billion, it is estimated that each taxpayer will pay about 7000 euros.

The Heritage tax despite the contention of the Executive shall not affect the fortunes, because these taxpayers are welcome to a different tax regime (SICAV) Created by the Socialist government of Felipe González and can avoid paying this tax ascribing many of its properties to any society, which can partially circumvent the Treasury.

The most affected are professionals with high purchasing power, which have progressed in their work or your small or medium, that is, the upper middle class.although EUR 700000 may seem a lot of money, anyone who has saved in your working life and have two homes will be in the payment limit, especially since many cities are updating the sign upward significantly.

A tax anachronistic nonexistent in most of the European Union

With the exception of France and Spain tax, Heritage is abolished throughout Europe. According to sources in the Madrid Association of Family Enterprise (FMEA), Updated as of yesterday, Belgium, Greece, UK, Ireland, Italy and Portugal have never had it, while it has been repealed in other countries: Austria (1994), Denmark (1995), Germany (1997), Holland (2000), Finland (2006) and Sweden (2007). Despite the current economic crisis, none of them poses Heritage reinstate the tax.Only France, due to the current economic situation, has decided to keep it, but at a level far below that wants to implement the Executive of the PSOE: 0.25% on assets above 1.5 million and 0.50% which have more than 3 million euros.

Heritage tax punishes savings and encourages capital flight

It is no coincidence that all European countries have repealed it. Most experts agree that it is a tax that punishes savers and imposes burdens on income already taxed in other taxes: the Income tax Linked to the income of individuals, and VAT, Which applies to the acquisition of goods and services and will also tax the Tax Equity.In addition, a tax that raises little more than 1000 million, 1.6% of the projected deficit for this year (60 billion euros) and, by contrast, discourages savings and investment, with the resulting output capital and impoverishment of the country, with a detrimental effect on employment, and heavily punished.