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SOCIALIST politicians will propose at a Parliamentary congress that pensioners, the unemployed and workers earning less than 16,000 euros a year and who have children are exempt from paying income tax.

Vice-secretary general of the national PSOE party, Elena Valenciano says at the great debate about the state of the nation in Parliament, she will call for ‘those who have little money’ to not have to pay taxes, whilst ‘those who are very wealthy’ pay much more.

“We know that there are people out there who have a lot of money and are not paying the tax they should be,” Valenciano said.

She made this announcement whilst visiting a school in Alaquàs (Valencia province) where a group of parents had staged a lock-in to protest over the regional PP government’s plans to make teachers redundant and cut class groups in the three provinces of the Comunidad Valenciana.

Additionally, United Left president Cayo Lara says he has planned some scathing responses for when – not if, he says – head of State Mariano Rajoy (PP) ‘defends’ his cabinet’s reforms and funding cuts by claiming the economy is improving as a result.

The PP famously stated around a month ago that it could ‘not understand’ how people ‘continued to protest in the street’ when the economy was ‘getting better all the time’.

But experts, including global charities such as Amnesty International and Oxfam, say the effects of any improvements to the economy are not being felt by the general public as poverty was rising too fast.

An estimated 22 per cent of children in Spain live in actual poverty and their parents cannot afford to give them ‘a glass of milk for breakfast’ before sending them to school, claims Church-run charity Cáritas.

In the meantime, the EU is calling for even more cutbacks, tax hikes, restrictions on who can claim dole money, how much and for how long, and cuts in wages and redundancy pay to help the economy improve.

Rajoy is expected to congratulate himself on improvements made to the state of Spain’s finances and to announce the start of a ‘new era’ in economy terms, where taxes will be frozen or lowered.