Wealth tax approved but confusion still reigns
Minister muddies waters over regions' entitlement
The Cabinet on Friday restored the wealth tax after the Socialist government put it on hold in 2007 but there was still some confusion over how many people will have to pay it, and what regional governments will get out of it.
After government spokesman José Blanco said 90,000 wealthy individuals would have to contribute more to the ailing economy, Economy Minister Elena Salgado on Thursday estimated 160,000 people with assets (excluding that of the primary residence) of over 700,000 euros would be liable.
Blanco added further to the confusion on Friday when he said "no region will charge twice," a reference to the compensation that regions get from Madrid since 2008 for the lost income due to the removal of the tax. Salgado, however, had said the regions would continue to receive this money, plus whatever they collect through the reinstated tax. The tax is expected to bring in over 1 billion.
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