Alicante economists warn of ‘hidden increase in taxes’ required by inflation

This almost 18% increase who recorded tax collection In the first three months of the year, the province is not only responding to increased economic activity after the worst effects of the pandemic have been overcome. A significant part of this increase is consequences of inflation what does this mean “hidden tax hike” for taxpayers.

This was warned by those responsible this Wednesday. Alicante Association of Economists What they did publicly to report the main innovations of the Income Campaign they demanded deflation of personal income tax rates in order to avoid double loss of purchasing power Many taxpayers will be hurt by the rise in prices, but also by the higher taxes they will have to pay.

As the Faculty Dean stated, Francisco Menarguesthe situation in which they would find themselves in this situation, for example, workers with some jobs salary increase. Even if this increase is less than inflation and therefore their real purchasing power is lower than last year, they will pay more taxes and some will even go up a bracket, so the increase will be even bigger, when “when they really have money” the winner will be able to buy less .

even something every month they will notice, As stated by the member of the board of directors of the College of Economists, in the withholding tax applied by your company, Anthony Rodriguez.

Adapt episodes

Faced with this situation, economists feel that rates should be lowered or, in other words, adjusted. sections that different types of personal income taxes are adjusted to reflect this loss of purchasing power and money is no longer spread out in the same way. Thus, if it now rises from 19% to 24% from 12,450 euros, a 3% deflation would mean increasing this limit to 12,823 euros. And such.

On the other hand, economists in Alicante, with the latest increases, maximum income tax rate over Valencian Community For incomes over 175,000 Euros, 54%. a figure representing 8.5 points more than Madrid, As Rodriguez recalls, it positions autonomy as the region with the highest marginal rate for high incomes in all of Spain, and also one of the highest in all of Europe.

Thus, if the Commonwealth of Valencia were a country, the rich would only pay more income tax in Denmark, where the rate reaches 55.9% according to the information provided. In addition, Menargues reminded that this difference in personal income tax should be added to the higher payments. wealth taxas the minimum amount of exemption in the case of autonomy has been reduced to EUR 500,000 compared to EUR 700,000 generally applied in the province as a whole.

In this context, the head of the Alicante economists, in addition to taking into account “repossessive” This is one reason why such a high income tax rate is different from other parts of the country. The brake on attracting and retaining talent for companies in the region or for the arrival of teleworkers from emerging sectors where high salaries are paid.

Minimum Living Income

They also criticized the fact that Minimum Vital Income recipients from the College of Economists have to submit the following. income tax return, when this benefit is tax-exempt. Therefore, Antonio Rodriguez pointed out that for many beneficiaries this obligation could mean: additional expense, if you do not have the capacity to file the statement on your own and you need a professional to do it for you. Quite contradictory, according to the expert.

On his behalf, chairman of the Association’s Financial Commission, Antonio Perez Rovirarecalled the basic advice when faced with this obligation with the treasury, for example always review data “The Tax Office does not always have all the information or may have inaccurate data” because it appears in the declaration before approving the declaration. In particular, he reminded that drafts often do not include territorial cuts or the many exemptions that exist for private groups.

Pérez Rovira insisted on remembering the event on this occasion. Special treatment for people over 65for example, if they have sold their habitual residence. In addition, they must not pay taxes on benefits provided to finance their stay in residence or day centers, unless the remainder of the income exceeds twice the IPREM.

The Tax Office expects to receive a total of 851,535 declarations this year in the province, 522,056 of which will be returned at a cost of 347 million, 2% more, and 227,028 will be given in return for a positive price. 502 million.

Source: Informacion

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