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Díaz rejects a generalized tax reduction and defends an extra tax on electricity companies and a rent freeze | Economy

The Second Vice President and Minister of Labor, Yolanda Díaz, this Wednesday at the National Library, in Madrid.
The Second Vice President and Minister of Labor, Yolanda Díaz, this Wednesday at the National Library, in Madrid.SERGIO PEREZ (EFE)

The Second Vice President of the Government and Minister of Labor and Social Economy, Yolanda Díaz, defended this Thursday the need to freeze rental prices in the face of the escalation of the CPI, as well as the implementation of an extraordinary tax on electricity companies, as proposes United We Can.

Diaz, in statements to RNE, has stated that the scenario that has opened the war and the rise in energy prices and the CPI is “complex” and will have a “significant” impact on the economy and employment. “This war is long-term and the impact is likely to be significant. Rising energy prices and inflation spread throughout the economy. It will have a strong impact on the economy and employment, but we do not have data to date on the impact on employment ”, he specified.

The minister has defended the proposals of Podemos to freeze the rental price and to establish an extraordinary tax on electricity companies to help alleviate the social and economic consequences of this new crisis that has opened with the Russian invasion of Ukraine, and has warned of a generalized reduction like the one advocated by the PP is “inappropriate” in a context of war. “The PP always gives the same recipe for any situation: general lowering of taxes. Yesterday I was in a meeting with 60 economists and the consensus is that a general reduction in taxes in a context of war is not appropriate because public services are sustained by public income”, she stressed.

Thus, he has pointed out that, with this popular proposal, what is proposed is “either mediate the Welfare State or increase the deficit and public debt.” For this reason, “he misses” that the PP “does not look” at the profits of listed companies, which in 2021 earned 64,000 million euros, a “historic” figure. “In this context of crisis, those benefits have to be redistributed. The three large electricity companies increased their profits before taxes by 47% in 2021, with 10,022 million euros, and they have to contribute to this crisis”, defended the second vice president.

He knows in depth all the sides of the coin.

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