Tax in Spain

HOW can the Spanish authorities get the tax system so wrong? First we have the enormous monthly bill for being self employed which is crippling small business on the island and in the rest of the country and then there was the now thankfully scrapped matriculation tax on yachts which ruined the yacht charter business and then there was the attempt last summer to get the more wealthy expats to inform the tax authorities of their worldwide assets.  End result;many small businesses have gone to the wall because of tax situation, the yacht industry has been severely harmed and some expats are thinking of moving away because they feel threatened by the Spanish tax authorities. All in all a very damaging situation for the Spanish economy which is only now coming out of recession. As we know, Spain for the last few years has been effectively bankrupt and the tax authorities were looking to raise money whether they could. This short-term policy has probably done more damage than good. Now, if Spain wants to be sensible then it should cut the rate of tax for small businesses because at the end of the day it will be the sole traders who will put Spain back on a positive path to economic growth. Also, it might be an idea if the tax authorities thought about the consequences before they introduced more stupid and senceless taxes. Spain needs foreign investment more than ever so think before you tax next time.