Tax and minimum wage - today's news
Something in today's news about income tax completely flummoxed me. I think I've got it worked out now. I may be wrong so don't take my ramblings as gospel but I thought you may be interested too. The current Spanish Government is a coalition. That coalition can usually garner support from other parties to approve its legislation, but not always. Today, one of the news stories was about a row within the two parties that make up the Government. Yolanda Diaz, from SUMAR, has done a deal with the Unions to put the minimum wage up to 1,184€ per month. Because there are 14 payments in the Spanish year that's a total income of 16,576€ per year. At the moment the minimum wage is 15,876€. Yolanda Diaz also pushed through legislation which dropped the working week from 40 hours to 37.5 hours for the same pay. The majority party in Government, the Socialists or PSOE, argue that, as the minimum wage is now a reasonable income, it should be taxed like other incomes. SUMAR argues th...