Spain’s government plans temporary higher tax rate for richest 1%

President of Spain Pedro Sanchez has announced plans to increase tax rates on the richest 1% (Jason DeCrow/AP)

Spain’s Socialist-led coalition government is planning a temporary higher tax rate on the richest 1% of the country from next year, in addition to its windfall taxes on large energy companies and banks.

“We are proposing a redistribution of the effort, among those who have the most, to fund the welfare state, which is everybody’s,” Socialist Prime Minister Pedro Sanchez said in a speech on Friday.