Government to increase social spending and introduce tax reforms to obtain CUP's support to the budget
The Catalan executive and radical left pro-independence CUP are negotiating the fiscal law, the so called Accompaniment Law, for the 2017 budget. The draft is set to include tax reforms as well as the introduction of new taxes especially oriented toward avoiding property speculation. One of the main hurdles has to do with the reform of income tax, which foresees the elimination of tax relief for property purchase for those who earn more than 30,000 euros per year. By applying this modification the Government could collect 11 MEUR in 2018, negotiators estimate. CUP also aimed to increase income tax for those who earn more than 60,000, but this proposal is not apparently on the table.