Spain eyes tax rise to plug deficit

Article reports that José Luis Rodríguez Zapatero, Spanish Prime Minister, said on the 31 August 2009 that his Socialist government was considering an increase in capital-gains tax as a result of the economic crisis, 2007-9 but would not raise tax rates on earned income.

The government was struggling to prepare a budget for 2010 in the face of falling revenues, higher state spending and resistance from the smaller political parties they need to pass laws in parliament.