Home Business The Fiscal Authority designs a minimum income for 1.8 million households with...

The Fiscal Authority designs a minimum income for 1.8 million households with low salaries

The unions UGT and CC OO presented in 2016 a popular legislative initiative in Congress – supported by 700,000 signatures – whose objective was to establish a basic income (426 euros) for long-term unemployed who lack income. Now the Independent Authority of Fiscal Responsibility (AIReF) It has evaluated the proposal and concludes that this union initiative would reduce the extreme poverty rate in Spain by only 27.7% and would have a very high annual cost of around 11,000 million euros.

For this reason, he proposes another formula with which he assures that a 60% poverty reduction and much more effectively with a net fiscal cost of 3,500 million. This minimum income would be compatible not only with the unemployed but also with workers with very low wages "up to a threshold in which a sufficient salary has been reached", the AIReF assures in a 156-page report that this newspaper has had access to.

Other proposals are that access to the benefit would have to establish income brackets per household for poor families, but «Focusing aid on severe poverty». They also propose to eliminate the requirements related to the employment situation of the potential beneficiaries and avoid discontinuities in the amount of the benefit, "reaching a balance between equity and simplicity in design," they explain in the document.

Two proposals

Thus, AIReF proposes two alternatives. In one of them, the aid would vary according to income and children, while in the second, it would be in three sections that would also take into account factors such as children. In both cases it would reach 1.8 million households, 700,000 more than the union proposal, according to the agency's data. It is due to the "lack of focus on the main objective because of the requirements to access the benefit". For this reason, with the union plan they calculate a reduction of 12.1% poverty rate and 27.7% severe poverty, while their proposal is to lower it by 2% and 60.4% respectively in the first option, and 4.7% and 46% the extreme in the second.

The first alternative proposes a benefit with two tranches depending on whether the household income is below the median of the salary or if it is 60% below. In the first case, a benefit of 80% of the IPREM (Public Indicator of Multiple Effects Income) will be received, which is always taken as a reference for public aid. To this we must add an additional child per charge of 1,200 euros each, which will also be the help received by the second case.

The second alternative It also proposes two tranches if the income is below 30% of the median or if it is below 60%. In the first case, the aid would be 10% to 80% of the IPREM to which we would have to add a child supplement of 1,680 euros per year. In the second case, the aid would be for dependent children with an amount of 1,200 euros per year for each one.

Both proposals represent a cost for the State of 5,500 million euros per year and would improve the quality of life of 1.8 million households, compared to the calculation of the 1.1 million families benefited from the proposal of the unions and the 7,200 million cost. In total, 1,700 million euros of difference to which it would be necessary add a saving of around 2,000 million "for the elimination of duplicities»When replacing existing features with the new one, analyze the document.

The appropriate application deadlines will be the 3 years gradually, which would mean annually one tenth of deficit, "Whose compensation with other measures is feasible".

(tagsToTranslate) authority (t) fiscal (t) design (t) income (t) minimum (t) million (t) households (t) salaries (t) low

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