As all the talk circulates of the need for tax increases to pay for the consequences of the economic crisis, it's clearly time to put in a word for the less fortunate amongst us. Let me introduce you to the SICAV, an investment vehicle for what is usually described as the "grandes fortunas" in Spain. Anyone can start one of these very special companies, provided you have 2.4 million euros at hand. Such is the unbearable fiscal pressure on those who have sacrificed their lives and health to raise the money for a SICAV, that when the annual tax bill comes in they are required to pay a distressing 1% tax on the profits of their investments. This is compared to 25% or more for a normal company, without even talking of the standard rates of income tax. Whilst there will always a resentful few who will suggest that those who did so well out of the bubble economy could perhaps contribute something to the cost of paying for its downfall, it seems unlikely that Spain's government will be presenting them with the bill. There are far more pressing reforms needed whilst we still have some people working who enjoy employment protection. El Roto in El País put it very well this morning.
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