Why the richest 1% of the population pay less taxes than the poorest 20%

Earning a lot of money is almost always synonymous with paying more taxes, but there are up to 189,000 people who fail to comply with this maxim: the richest 1% of the population pays proportionally less taxes than the poorest 20%. It is one of the conclusions of a report prepared by the Fedea Foundation for Applied Economics Studies. But how is this possible?

It seems incredible but it has an explanation and we find the first reason in the indirect taxesamong which are the VAT or electricity taxes: it doesn’t matter what our income is, we all pay the same when going to the supermarket or getting gas. This is what tax lawyer José Mateo Ruescas points out, who assures that “They are unfair because the rich and the poor pay the same.“.

Furthermore, the richest 1% have capital incomethat is, investments in funds or rentals and that type of income “taxed in half than work income or pensions,” according to Jorge Onrubia, one of the researchers who prepared the aforementioned report.

To all this we must add the tricks of some who They keep their assets in companies or funds that they do not redeem annually and therefore do not have to pay for them, as revealed by the Treasury inspector José María Peláez.

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