PSOE plans tax exemption for low earners and jobless
Opposition party describes measure as "rescue for those most harmed by the crisis"
Ahead of its major midterm policy conference this weekend, the Socialist Party (PSOE) leadership has revealed plans to exempt two groups from income tax in its proposal for fiscal reform: the unemployed and individuals with children who have net earnings of less than 16,000 euros a year.
Party leaders said the reform, which would benefit around five million people, was "a fiscal rescue for those most harmed by the crisis." Currently, all workers who earn over 5,000 euros a year pay income tax, as well as most unemployed people, who have two percent taken off their benefit payment. The measure would come at a cost of five billion euros to the public coffers.
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