According to Government projections, the announced measures that imply a 7% tax hike on individual income will compound only to a -1% GDP decrease (sorry for the double statement, just to make everything clearer), well below the current -3.2% in 2012. I am sorry for the blunt statement, but that seems like science fiction. Nobody can look at those predictions and consider them real.
But this is not a joke - it is a very serious matter. Because, truth is, a number of projections (tax returns, employment,...) rely on this figure. Which means that by not achieving it, the sovereign budget will miss its figures again. And then need a sharp readjustment - that will be exactly like this and send the economy tumbling even deeper into a negative spiral.
Why don't we cut unproductive spending in Public Administration instead? We know we will have to do it somewhere down the road, we know it will take time to succeed and we know it is the right measure. So... why don't we do it?
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