The Spanish tax system has been subject to numerous debates, especially around the distribution of fiscal burden. One of the most incomprehensible data by the general public is that About 70% of the population in Spain does not contribute to the Income Tax of natural persons or IRPF.
This does not mean that they do not submit income statement, but, due to low income, deductions or exemptions, His effective contribution to the tax is null.
This `phenomenon ‘has intensified in recent years due to tax reforms that have raised the minimum exempt and expanded deductions, especially aimed at medium and low income.
Although this may seem a progressive measure, too is further concentrating the weight of the fiscal system on a taxpayers minority. A total paradox.
How IRPF is really distributed in Spain
According to the latest official data, 40% of IRPF declarators – which is equivalent to almost 70% of the total population – do not really pay this tax. This means that its fiscal result is zero or even negative (that is, they receive returns).
Instead, The richest 10% of taxpayers assume 57% of the total raised by IRPF. The concentration is even more marked if it is observed that The richest 1% pay 21% and the 0.1% top contributes to 7% of the total.
This cast generates a fiscal structure where A very small part of society is supporting the bulk of the systemwhile most are out of the obligation to contribute directly to the support of the State via IRPF.
And how is the situation in other developed countries?
This phenomenon is not exclusive to Spain. In fact, Most economies developed with progressive tax systems have a similar concentration in the collection of income tax.
In USAFor example, 40% of the population does not pay federal taxes on incomeand the maximum marginal rate of 37% applies to income greater than $ 609,000.
In United Kingdomthe situation is even more striking: 44.7% of citizens do not pay any income taxwhile The richest 10% contributes 69% of total tax revenues.
A British worker with a salary of 150,000 pounds pays 53,460 pounds in IRPFin contrast to another that wins 25,000 pounds, who pays only 2,486 pounds. Despite this obvious progressivity, political discourse still revolves around the idea that “the rich must pay more”, when already It is they who support most of the fiscal weight.
In Germany37.4% of the population does not pay income taxes, while in Australia The figure is 58.5%. These proportions confirm a generalized trend in developed countries: Income tax burden It falls very significantly in the highest income.
Fiscal reforms in Spain expand the number of non -contributors
In recent years, different reforms promoted by both left and right -wing governments have sought to relieve fiscal pressure on the middle and low classes.
This has been done mainly through the increase in exempt personal and family minimums, as well as through specific maternity deductions, rental, large family or disability.
The result is a growing proportion of citizens who, although they present the income statement, do not end up paying the taxor even receive returns greater than their retentions.
This dynamic has intensified with inflation, since many salaries have risen, but not enough to generate a net contribution to the IRPF after applying current deductions.
In addition, some autonomous communities have implemented additional reductions in the regional section of the tax, which further increases the number of people who remain outside the effective contribution system.
The eternal debate on fiscal justice
The idea that “the rich must pay more” remains one of the main flags of progressive tax discourse. However, the data shows that There is a deep progressivity in IRPFboth in Spain and in other developed countries.
Loading even more than 10% that already supports more than half of the system can have negative consequencessuch as the discouragement of effort, investment or talent attraction. In the long term, this can weaken the total tax base and, paradoxically, reduce the collection capacity of the State.
Besides, The disconnection of a social majority regarding direct tax contribution can erode the social contract. If most do not pay IRPF, but demand quality public services, the tension between rights and duties becomes more evident.
With the current demographic and economic trends, this dynamic is likely to be maintained or even accentuated.
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