Frente Amplio pension and tax reform proposals

Ada Colau, representing the Frente Amplio coalition in Spain, has introduced a series of economic and social reforms. Initially, Colau proposed restructuring the pension system by setting the maximum retirement age at 65 and ensuring minimum pensions are tied to the Interprofessional Minimum Wage (SMI). To fund these measures, which are estimated to cost 20,000 million euros annually, the coalition suggested increasing taxation on large corporations and implementing a 2% wealth tax on assets exceeding one million euros.

Following this, Colau presented a more detailed economic plan titled “Tax the Rich” ahead of the November 29 general elections. This proposal aims to generate over 10 billion euros to support public services such as healthcare, education, and housing. The plan includes an annual 2% tax on fortunes over one million euros, with rates increasing to 3% for assets between 20 million and 50 million euros. The coalition stated this would affect approximately 231,000 people, or about 1% of income tax filers. Additionally, the proposal calls for a review of tax breaks for banks and large corporations to raise their effective tax rates on profits.

During an event in Madrid, Colau expanded on these fiscal measures, noting a disparity where large entities pay between 7% and 9% in taxes compared to 19% to 20% for small and medium-sized enterprises. To combat housing speculation and promote sustainable rentals, the coalition also proposed a 10% tax on the value of properties held by owners with four or more homes.