⁍ Spain’s left-wing government announced plans to raise taxes on large companies and high earners.

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⁍ The 2021 budget is due to reduce tax exemptions for dividends from subsidiaries earned by big corporations to 95% from 100%.

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⁍ Higher corporate taxes will affect just 0.12% of Spain’s companies and yield 1.52 billion euros.

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– Spain’s left-wing government announced plans to raise taxes on large companies and high earners to fund increased spending on social care and infrastructure as part of its progressive agenda. With the coronavirus-battered economy expected to shrink an unprecedented 11.2% this year and tax revenues due to ebb 7.6%, the government aims to boost 2021 budget revenues by $8.04 billion, giving it more firepower to spend its way out of the crisis. “This budget cannot be postponed. This budget is essential for the modernization and recovery of our economy,” Prime Minister Pedro Sanchez said in a televised statement, per Reuters. Governments around the world have so far said very little about how they plan to pay for the cost of unprecedented levels of state support to virus-hit economies. Even the International Monetary Fund last week said the priority for now was to control the pandemic and then foster economic recovery.