The candidate of Frente Amplio for the elections of 29N, Ada Colau, has defended the creation of a new tax aimed at the ultra-rich, which would be activated starting from wealth holdings higher than one million euros, with the expectation of obtaining more than 10,000 million euros.
In detail, she has proposed that this levy apply a rate of 2% on the total wealth of those who exceed one million euros, a percentage that would increase to 3% for wealth holdings that exceed 50 million euros.
Likewise, she has set as a priority the elimination of certain tax deductions for large companies and the banking sector, with the intention that they bear a higher effective rate on their net profits. In the case of banking, she has recalled that financial entities accumulate, up to September, earnings worth 26,000 million euros.
Colau has noted that, currently, the effective rate borne by large companies and banks stands at between 7% and 9%, while SMEs pay between 19% and 20%, that is, approximately double what the financial sector pays.
She has presented these proposals this Thursday during her appearance at an information breakfast of Nueva Economía, held in Madrid, and hosted by former Podemos leader and former State Secretary Nacho Álvarez, who was responsible for economic matters in the purple party.
Álvarez has expressed his direct support for the Frente Amplio candidate by stating that Colau and her political project represent the appropriate alternative if, in these elections, one chooses “to rebuild social contracts that mend the fractures” that the country is going through at this moment.
During her speech, Colau detailed several initiatives in the economic sphere and outlined a tax reform aimed at meeting the challenge of redistributing wealth and ensuring access to housing.
Along these lines, she has supported the tax on multi-property owners with more than four homes, which would reach 10% of the population with the highest income level and would leave out the small owner. The purpose is to mobilize around 500,000 homes that are currently offered at “abusive” prices toward affordable rent, incentivizing a notable reduction (of 30%) to be exempt from this tax. She has insisted that the purpose of this levy is not revenue-raising, but fundamentally deterrent.