The middle class already pays more than 50% of its salary to the Treasury after Sánchez's 69 tax increases

The Government staunchly defends that in Spain the majority of taxpayers have only seen their tax system improve since Pedro Sánchez became president, and the first vice president and Minister of Finance, María Jesús Montero, has been the champion of this campaign. image, maintaining that the middle and popular classes have benefited from a more beneficial tax burden. However, the numbers are clear and say otherwise. The weight of taxes on the national GDP has risen six points, from 32% to 38% since 1995. Said like this, it would not be fair to blame Sánchez for all this tax push, but he must assume the majority of it, since 60% of the increase in fiscal pressure has taken place under his Government.

They also highlight from the economic sector of the Executive that the fiscal margin with respect to our European counterparts is still very wide and that there is room to reduce that gap – Nadia Calviño did it repeatedly during her time at the head of the Economy, as she does now Carlos Body and defends especially Montero. But in its attempt to harmonize Spanish taxation with European taxation, the tax increase would result in a figure close to 39,000 million euros, equivalent to 2,082 euros more per household. For now, Sánchez has already achieved the highest collection record in tax history. During his years in government, tax revenues have skyrocketed by 72,962 million euros, an increase of 2.8%, corresponding to 3,890 euros per household and 1,527 euros per personespecially for personal income tax.

Thus, it is confirmed by the «Taxometer 2024″, prepared by the prestigious Juan de Mariana Institutewhich points out that on average, EU partners barely increased taxes between 2019 and 2022. Instead, Spain has been the country with the greatest increase in tax pressure during this period, which “has contributed to worsening our performance before, during and after the pandemic, to the point that we occupy the last place in the Economic Management Indicator,” the report states.

Families pay two out of every three euros collected

Using data from Eurostat – the community statistical agency – they have verified that two out of every three euros of increase in tax collection have fallen on families. In total, tax revenues have increased by an amount equivalent to the aforementioned 3,890 euros per household, and almost half of this increase was due to the “decision not to index taxes to inflation and, therefore, not to discount this “effect on the tax system of the largest price increase in forty years,” the Institute abounds.

Its analysts have also found that, on average, The Government “creates or raises a tax every month.” Between the years 2018 to 2024 “it has applied no less than 69 tax increases” and this desire is not going to stop because they warn that during the 2025 financial year it intends to increase collection by another 7,000 million, a figure equivalent to 371 euros per household.

Although they recognize that Spain is not the country with the highest tax burden in the EU, as it is around the average, the comparison with the countries that have a higher tax burden leaves us clear in relation to the salary level. For example, the tax burden in Germany is 10% higher than in Spain, but the income of Germans is 45% higher. «This reminds us that it is necessary to relate the tax pressure to the income levels of each country. In fact, if the weight of taxes on GDP were balanced with the income levels observed in Spain, “taxation would be reduced by 15 billion and families would pay 815 euros less each year.”

Contributions, personal income tax and VAT

In the same sense, in the relationship between salary received and real salary, Spanish workers also lose out. An average income in Spain receives a real total salary of 34,989 euros, but from this figure we must deduct 8,157 euros of contributions paid by the company and 1,731 euros of contributions on behalf of the worker, as well as a personal income tax of 3,860 euros and an expense accumulated VAT of 1,450 euros. Therefore, 43.44% of the entire salary ends up in the treasury coffers due to these three tax figures. But if we add the IBI to social contributions, personal income tax and VAT, an average worker would pay 15,480 euros each year in taxes, which brings the total payable to 44.24% of their full salary.

More income taxes

And there is even more, since to these figures we must add the impact of savings income –over time, about 20,000 euros per family–, taxes on inheritances and wealth –in the process of harmonization–, taxation of insurance premiums –about 110 euros per household–, the tax applied to the purchase of housing –around 26% of the final price to pay, which would be 50,000 euros in a purchase of 200,000 euros–, the taxes that affect the purchase and use of the car –from VAT to registration and circulation taxes, also passing through collection fines, WLTP regulations and taxes applied to fuel – and levies on the consumption of alcohol – 40% of the final price – or tobacco – in its case 80% –. “When considering all these tax figures, the average Spanish taxpayer pays more than 50% of what they earn to the Treasury.”

In 2018, the year in which Pedro Sánchez came to power, the Spanish tax pressure was 5.7 points lower than the community average; In 2022, the last year with final data, this differential was reduced to 2.9 percentage points of GDP, so it has already achieved half of the objective of equaling Europe in fiscal pressure, but with a much lower salary.