With Spanish elections looming the Socialists panic and cut taxes to stimulate the economy
The Socialist Spanish government will temporarily halve the sales tax on new homes to 4% to try to stimulate its construction sector.
What is interesting is the Socialists are only interested in TEMPORARILY cutting taxes to stimulate the economy. Heaven forbid you might permanently lower taxes and create jobs and wealth for decades and decades. But if you did that then you prove the lie that is Socialism and Marxism.
Spain's economy was plunged into recession following the collapse of its once-buoyant property sector.
The government is also hoping that building projects will help create jobs and cut the unemployment rate, which is one of the highest in the eurozone, reports the BBC.
|The collapse of the Spanish property market left |
many homes unsold or unfinished
The sales tax cut is one of a number of measures that was agreed at a cabinet meeting. The measures are designed to boost Spain's weak economic growth rate and generate revenue to help it cut its deficit.
The reduction in tax, designed to stimulate the construction sector, would last until the end of the year, a government spokesman said.
"This is a temporary and exceptional measure," he added.
There are also new measures to bring forward corporate tax payments and cut health spending on brand-name drugs.
It is hoped the move to cut drug costs for regional government via the introduction of a new generic medicines bill will save 2.4 billion euros.
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