Options for Reforming the Spanish Tax System

The recent tax reforms have improved incentives to work and removed barriers to the internationalisation of Spanish firms, and have helped to make the tax system simpler and more neutral, especially as regards saving. However, the structure of tax wedges, combined with significant labour market rigi...

Full description

Main Author: Joumard, Isabelle
Other Authors: Varoudakis, Aristomene
Format: eBook
Language:English
Published: Paris OECD Publishing 2000
Series:OECD Economics Department Working Papers
Subjects:
Online Access:
Collection: OECD Books and Papers - Collection details see MPG.ReNa
Summary:The recent tax reforms have improved incentives to work and removed barriers to the internationalisation of Spanish firms, and have helped to make the tax system simpler and more neutral, especially as regards saving. However, the structure of tax wedges, combined with significant labour market rigidities, continues to inhibit job creation, and particularly job creation for the unskilled. Furthermore, certain tax privileges, in particular incentives favouring owner-occupied housing, and the multiplicity of tax rates and systems applying to business profits, hamper economic efficiency and/or weaken income redistribution. Also, while the territorial authorities' taxing powers have been increased considerably since 1997, they remain modest by comparison with their prerogatives as regards spending. The absence of adequate mechanism for controlling expenditure at the territorial level, plus the tax revenue guarantees extended to the regions by central government, could jeopardize ..
Physical Description:63 p. 21 x 29.7cm