These days the Spanish press is abuzz with news of the harsh treatment which Spanish writers are receiving from Hacienda, our local tax revenue agency. I have already signed the corresponding Change.org campaign asking the Government to reconsider the regulations implemented back in 2013. I agree 100% that this yet another attack against the persons who work for the benefit of Spanish culture–in a wide-ranging sense. It is important to note that the situation affects not only writers but any artist in any field.
Let me summarise the changes. The legislation affecting retirement was modified by the right-wing PP Government back in 2013. Most of us paid attention, above all, to the fact that the retirement age has been raised from 65 to 67, following the directives of the European Union–they think we are too poor and our life expectancy too prolonged to balance numbers in our welfare system. What we missed was the article stating that retired workers risk losing their state pension if they engage in professional activities generating an amount above the yearly minimum wage, that is to say, 9172,80 euros for 2016.
Recently, we were all surprised by news that the retired persons who worked as extras in the film Ocho apellidos catalanes, earning 240 euros in four days, had been ordered by the Ministerio de Empleo y Seguridad Social to refund 126,39 euros from their pensions–which seems to contradict the legislation I am describing (see http://www.lavanguardia.com/cine/20151207/30653878749/jubilados-pension-ocho-apellidos-vascos.html). They had not been warned in advance. A retired woman teacher, who did check her situation with Hacienda, has been fined nonetheless 23000 euros for teaching a few weekly classes at 90 euros an hour (see: http://www.laverdad.es/gente-estilo/201601/21/hacienda-multa-jubilada-clases-20160121110128.html). That’s all her savings.
Writers, then, are not quite an exception for Hacienda although their case, of course, has attracted more attention given their public exposure. One has been fined 100000 euros, another has lost his 30000 yearly pension after earning 15000 in royalties (http://cultura.elpais.com/cultura/2016/01/21/actualidad/1453404951_724842.html). And here is the main problem: Spanish legislation considers royalties for books published before retirement income from work, hence incompatible with the pensions. Royalties, Hacienda claims, are not the real question: they’re after the contracts signed after retirement for publishing but also for other activities like lectures. Writers, let’s clarify this, are usually divided into two categories: those who pay for their own pensions by declaring themselves ‘autonomous’ or self-employed workers and those who write while employed in other professions. Their enormously varied cases are hard to reduce to just one situation.
The writers themselves, organized in the Asociación Colegial de Escritores de España launched a manifesto on November 6 to protect their rights to remain creative after retirement. One of the strongest points of their protest is that in European countries such as Germany, Switzerland, Austria, France, the United Kingdom, Sweden or Poland, state retirement pensions are compatible with any other activity with no income limits: you just need to pay the corresponding taxes (see http://acescritores.com/pension-creacion-artistica-derechos-compatibles-la-union-europea/). Other countries, such as Belgium, Bulgaria, Denmark, Slovenia, Greece, Island, Lithuania, the Netherlands and Romania, however, have legislation similar to ours.
If you read the readers’ comments to all the newspaper articles I am quoting from here, another picture emerges. Most readers defend the right of the producers of culture to go on making the most of their talent, invoking the argument that since eventually their work–at least in the case of writers–reverts to public ownership they contribute to society always in excess of the money they earn from a pension. Indeed. Just note, please, that the work of, say, painters is not subjected to similar legislation which is why certain pictures by dead authors are sold for obscene amounts of money. In contrast, the writers’ heirs lose their rights 70 years after the death of the author.
Others readers, however, stress that writers want to be treated unfairly as a special, privileged category. After all, these readers claim, legislation should apply to all. They also point out that you may go on working after retirement by arranging to earn 50% of the pension and continuing to pay your ‘autonomous’ worker fees. Above all, and here is the main criticism, a handful of frankly annoyed readers clarify that writers are not being asked to stop writing, just to stop charging money for their work. If we all pay a writer a pension collectively, then s/he is freed from market demands and can actually publish whatever they want. Any other position, an angry reader declares, is just mercenary, proving that what is at stake is not culture per se but the writers’ participation in the cultural marketplace.
To be honest, I’m terribly confused by all this. To begin with, a retirement pension is no obstacle to earn rent from property, investments or savings. If we apply the law’s rule of thumb taking into account these factors then many upper-middle-class persons retired from liberal professions would (should?) lose their pensions. In Spain pensions are not personal, in the sense that you do not receive at the end of your working life money coming from your personal account (as happens in private funds). You receive a quantity dependent on the years you have worked and the taxes generated by the younger workers. In the future it might well be that if these younger workers are too few to sustain the system nobody will get a pension. This is why it is very important to consider how the scant resources are being distributed, hence Hacienda’s tough stance. Yet, I insist, the law punishes specifically work, allowing retired persons to enjoy other sources of income.
As a civil servant who earns a state-funded public salary any extra income I may generate is also tightly limited by legislation. In my case, as an A-class civil servant I am allowed to generate income up to 30% of my salary (from ‘compatible’ activities). I do not know whether a writer/university teacher faces then a problem is his/her books generate royalties surpassing that quantity but it seems to me that the situation is comparable to that of retired writers. The top retirement pension in Spain is 2567 euros and guess what?, 30% amounts to 9241 euros, just a bit above the 9172,80 euros limit.
As you can see, I cannot make up my mind. I certainly don’t want anyone to stop producing culture when they retire–as I intend to go on writing when I retire. I very much disagree with the discrimination of income from work in relation to other types of income. And I am appalled by Hacienda’s sneaky tactics. Yet, my socialist heart tells me that there is very little money to go by for pensions and that if you are active and generating income, then you are not retired, hence you have no right to a pension. If your pension is so low that you need the income from your books to make ends meet, then the problem is the pension, not the books. My rational head tells me that the obvious solution is taxing all extra income, just as property, investment and savings are taxed, and as the civilized countries are doing.
One thing I am sure of is that producing culture has nothing to do with receiving money for doing so. It is simply not the case that individuals only produce culture for gain now or in the past. This is, plainly, a capitalist idea.
It all boils down to this huge question: what kind of worker is a writer? You tell me…
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