FACTBOX-Spanish newspaper comment on planned tax hikes

MADRID, May 20 (BestGrowthStock) – Spanish Prime Minister Jose Luis
Rodriguez Zapatero announced tax hikes for high earners on
Wednesday as the government scrambled to rein in a public
deficit some fear could heighten the euro zone crisis.

Zapatero will provide details of austerity measures,
including public sector wage cuts, in parliament on Thursday.

Speaking at an EU-Latin American summit in Madrid, Zapatero
did not give details or the timing of the tax increases, saying
only they would only affect “those who have the most”.

Following are comments in Spain’s main newspapers on
Thursday:

EL PAIS, LEFT-LEANING

“Selective and proportionate tax hikes could be a useful
complement to spending cuts to be detailed by the government
later on Thursday, but they would only be justified if income
taxes charged at salary level don’t sky-rocket.”

“The only income that the government controls is salaries,
and those aren’t ‘the ones who have the most’; (the wealthy)
have various, comfortable ways of avoiding government fiscal
action.”

EL MUNDO, close to right-wing opposition

“If the government wants to raise taxes rather than lowering
them to stimulate the economy, it should present a credible
fiscal reform project … and not revisit ‘ideological’ taxes to
save face (with voters).”

“It’s dangerous to use demagogy with sensitive social
issues, particularly at a time when many Spanish families are
having financial difficulties.”

ABC, the most conservative daily
“This is the government’s latest move to soften public
discontent over the cuts in social spending and salaries.”

“Talk of tax hikes ‘on those who have the most’ is no more
than leftist haranguing.”

Stock Market Report

(Reporting by Tracy Rucinski; editing by Andrew Roche)

FACTBOX-Spanish newspaper comment on planned tax hikes