The increase in the Minimum Interprofessional Salary (SMI) has created a crisis within the Executive.
The Minister of Labor, Yolanda Diaz, opposes the Treasury's decision to tax the recipients of the SMI.
The Government has not adapted the income tax despite the increase in the SMI, revealing an internal division.
The Ministry of Treasury defends the measure arguing that the increase of the SMI has led to more citizens receiving it.
Despite the criticisms, the withholdings will only apply to 20% of the workers who receive the SMI.
The Spanish tax system is one of the least redistributive in the EU and the tax pressure in Spain remains comparatively low.
The Government missed the opportunity to discuss an integral fiscal reform and the tax system remains unfair for mid-low incomes.
Conclusion: The internal crisis in the Government over the increase in the SMI and its taxation highlights the need for comprehensive tax reforms to achieve a fairer tax system.