Report
The redistributive effects of the system of taxes and transfers in Europe
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1Spending on public transfers in Spain during the 2007-2016 period shows a marked anti-cyclical nature, increasing during the worst years of the crisis. Prominent because of the volume they represent are retirement and survivor benefits, followed by unemployment benefits.
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2The distribution of market incomes worsens as a consequence of the crisis. However, taxes and public transfers, in general, have a powerful redistributive effect.
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3From the perspective of both income and that of spending, Spain is set within the context of a Mediterranean welfare model, characterised by revenues and transfers representing a GDP percentage lower than the European average.
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4With respect to income, the redistributive potential of Spanish income tax (IRPF) is slightly above that average. However, the Spanish system of social contributions etc. does not favour income distribution, with Spain being the only country in the European Union where this does occur.
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5Spain presents serious problems in the set of guaranteed minimum income benefits (family, social exclusion, education and housing), and is positioned very much lower than the EU-28 average. Spending and the redistributive effect are especially reduced in family policies and in policies against social exclusion.
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6The proposals for change analysed here would situate Spain within the range of the EU-28: a scenario of modifications of social contributions towards a model closer to that of Belgium, and a scenario of modifications in minimum incomes towards the complete implementation of the current system.