Understanding Key Economic Concepts in Spain
What is a Tribute?
Is all income earned by a public agency against the taxpayer an indication of the economic capacity of the Principles of the Spanish tax system?
Principle of Generality
All those engaged in economic activity in the Spanish territory must pay taxes.
Principle of Junction
Those with greater economic capacity have to pay more taxes, with the limit of confiscation of property, a limit that is the ultimate expression of the right to private property.
What are the State’s General Budgets?
This is the name given to the public budget in Spain. They are prepared annually by the Ministry of Finance.
What is a Strike?
The strike is a means of pressure which is exercised by the labor force to influence the labor antagonist to behave in a way that satisfies the interests of workers.
What is Socialism?
It is a political ideology that designates those theories and policies advocating in principle an economic and political system based on democratic ownership or possession of systems of administrative control of production by the same producers or workers.
Tax and Rate
- Tax: A kind of tribute (usually monetary obligations for the tax credit).
- Rate: Governed by public law; it is a tribute for the exclusive or special use of the public domain.
Institutions of Spanish Policy
Head of state, government, general courts, general counsel of power court.
Role in the Economy of a Country
The government:
- Develops laws and regulations of a labor character (setting the minimum wage, wage revision of CPI increases or pension, …).
- Implements price controls (in goods or basic services or under certain circumstances).
- Manages advertising or product information (labeling, nomenclature, broadcast times, …).
- Promulgates rules that form part of the Competition Law (is part of Business Law), with the Court of Defense Competition.
- Analyzes and publishes the concepts and basic macroeconomic indicators that determine a country’s wealth (macroeconomics). These are the Gross Domestic Product (GDP), Gross National Product (GNP) and Net National Product (NNP), National Income (RN) and per capita income (PRC), the active population or individual assets, balance of payments (or trade balance) and the exchange rate.
- Analyzes the impact on inflation than the consumer price index (CPI) and unemployment. Are factors affecting the economy and domestic duties.
- Publishes the data and provides explanations of these phenomena.
What is a Record of Employment Regulation (ERE)?
The case of regulating employment, abbreviated with their initials, ERE, is a procedure provided for in Spanish legislation by which a company seeks authorization to suspend or fire workers due to a crisis.
Spanish Economy Problems
Citation:
A brutal deficit, which is becoming more expensive to finance in an international environment in which the money has dried up. An economy that weighs too much on low-skilled sectors and low productivity (construction, services … etc). We cannot aspire to European wages when we produce what the Chinese and Moroccans can produce 3 times cheaper. Moreover, as we produce what we consume a lot of labor from low productivity, as the economy goes into recession, unemployment rises sharply (the economy falls by 1-2% and unemployment up 4 times ( between 6 and 8%). … An excessive debt unpayable maybe? We will see the default within a few months. We will not see the buildings at 2006 prices in years. A social spending to the tail of the EU ( but of course, with this productivity and GDP per capita that what can we expect? The services are not free).
What is VAT?
It is an indirect tax on consumption that is financed by the final consumer. An excise tax is a tax that is not collected by the state directly from the tax.