On September 27, the head of the Generalitat announced in his speech. General Policy DiscussionMost importantly, with the budgets of those held annually in the Valencian Courts, tax reform to help ease the growing burden As a result of the knock-on effect of the pandemic and the outbreak of the epidemic, the citizens suffered Ukraine war, energy crisis and inflation. The plan consisted of a stellar reduction in the regional personal income tax rate of up to €60,000 for annual incomes, with those exceeding this limit not getting any reductions, but no increases either.
In this intervention, Consell’s chairman described the reform he proposed as the result of a “Keynesian view” of the economy. “Neither inactivity nor tax gifts on wealth,” he said, as some have commented. double implication: to the “inaction” of the PSOE and the United We Can Government headed by Pedro Sánchez, hitherto, on the one hand, he had flatly refused to lower taxes or even to cut personal income taxes for some, to combat the effects of rising prices; already “tax gifts” Autonomous governments of the PP, headed by Andalusian Juan Manuel Moreno, whose reductions will benefit not only low and middle incomes, but also high incomes. “Slightly lower taxes on the richest, where we help as many families as we can to make ends meet,” the president said.
The proposal by the head of the Valencian government had immediate effects on national politics. The leader of the PP, Alberto Núñez Feijóo, jumped into the pool to see if there really was a troubled river to fish and asked Sánchez to follow the example of Puig, whose recipes he identified with those he defended. The PP ignores that, in the case of Valencia, although taxes are not raised on incomes above 60,000 euros per year, successors and property transfers are not deducted or subsidized, as Moreno Bonilla or Ayuso would. for your sharecentral executive, Receiving Puig’s plan with undisguised annoyance, it only took 48 hours to change the position he was holding It is announcing its own tax reform, which lasts weeks and includes tax breaks for taxpayers with less capacity, but accompanied by increases for higher incomes, despite the €60,000 limit set in the Community of Valencia. salary of more than 200.000 Euro per year.
Ministers will make reductions this year, but not next year. CEOs all the time. This is a joke. But it gives an idea of the futility of tackling the issue.
Puig’s plan was a winning political bet, whichever way you look at it. Most stuck to the frame orthodox social democracybets on rebalancing loads in times of severe crisis to support those in need: taxes were reduced for a very large segment of society (All, ie the majority of those who earn less than 60.000 Euros), while preserving the contribution of the restConsidering, firstly, The Valencian Community is already one of the regions with the highest tax pressure in Spain and second, that most of the new benefits and bonuses that are also approved are for the first majority tranche of less than 60,000 euros, without access to them by second enrollees. He also left PP Plan, This benefits all incomes that include increases with decreases, including incomes that are highest and subsequently exposed by the Spanish Government. In short, Puig’s reform aimed to benefit not only the low-income, but also the middle-income: both those below the 60,000-euro limit will receive a discount, and those who exceed it, they would not have to carry a larger load than they already carried. Since this load in the Valencian Community is lower than the European average; but above average for the whole of Spain. Higher collections from indirect taxes and lower social expenditures will more than offset the reduction in the majority without further increasing taxation of the remainder, which would ultimately mean leaving those who will suffer the worst of this crisis to fate. At least temporarily.
Puig’s “hit” was clear, because left-wing voters aren’t enough for him if he wants to secure victory over the right-wing bloc in the next election, but he needs blood transfusions from moderate voters. the political spectrum and will be able to choose who to vote for the PP or the PSOE. That’s where Puig played—probably with a few thousand votes from a 3.6 million voter count—to continue in Palau or hand over the keys. But their partners didn’t see it that way, so they’re about to disrupt the entire operation. Compromise and Podemos are neither stupid nor perverted. But they have a different analysis. Neither is trying to expand their “market” at this point, but rather abstaining seems not to punish them by causing them to lose so much of what they originally had. Therefore, they could not settle for a descent without a climb. Because they need to nurture the “rich/poor” dialectic, believing that this is the discourse that will mobilize their voters and keep them from staying at home.
The essence of Puig’s plan, to lighten the burdens of many without further pressure on others, was rendered obsolete. As with the tourism tax, where one tax and dozens of subsidies are approved at the same time.
If nothing changes, this week Consell will now approve a tax reform that will include a tax increase for anyone who receives more than 65,000 euros a year, although the measures that harm taxpayers are not retroactive. imposes the law will allow Botànic that this increase is not reflected in the 2023 announcement, which is the election year, but in the 2024 announcement, where everything is decided at the ballot box. However, discounts will be given to those earning less than 65,000 euros this year and less than 62,000 euros next year. These hats, introduced by Botànic’s partners, are intriguing. For example, regional vice presidents, ministers, secretaries and undersecretaries will be able to take advantage of this discount this year: they earn just over 63,700 euros a year, so they are not rich in 2022 because they are below the 65,000 mark. classification made by the parties. In 2023, they will have to pay more taxes, reducing this limit to 62,000 Euros. Regardless, the ones who will always be insured are CEOs who, for 600-odd euros, will never fall into the category of wealthy civil servants, because they are not affected by the 65,000 cap or 62,000 the following year: they earn exactly 61,312.88 euros per year. Headquarters are training schools or refuges to which the major parties send their future leaders or apparatuses. Vice President Aitana Mas or PP candidate Carlos Mazón, to name two conflicting examples, were general managers. Now you see: for a hair, CEOs won’t get rich and pay more; but they remain in the low or middle income category and there will be a decrease. You have to look after the soldiers.
The joke, which is no more than that, comes from the arbitrariness and, why not, frivolity, corrupted by the tax reform of the Valencian Community. Because even if it is not shared, it can be understood that the PP brought up: discounts for everyone, on the basis that this will lead to greater investment and consumption and an improvement in the economy (obviously wrong, tell the Bank of England). As can be seen from something the Government of Pedro Sánchez eventually advocated: discounts for the most disadvantaged (rents below 21,000 euros, those who enter less than 35,000 now, but will have to pay back said discount the following year) and rise for really high incomes (e.g. , salaries of more than 200,000 Euros per year). While Sanchez’s reform is one that continues to expose broad strata of the working population, since a worker’s status is not dependent on salary or whether the job is manual, unless he continues to govern the plans of the nineteenth century, It is not without political logic or economic coherence. This is exactly what Generalitat Valenciana has lost: logic and consistency. Here, 65,000 winners will pay more and less than 64,999. This year. When he arrives, the tables change.
Although the President of Consell threatened a crisis of serious proportions, the Compromis and Podemos imposed their laws.
After speaking at the Cortes on September 27, Puig told his interlocutors that he would not let his partners in. Compromise and changes imposed on Podemos In their perverted tax proposals that would support the vast majority of the population: some who gave them bonuses and received less than 60,000 euros; but according to others, those who go above this number do not put any more pressure on them. He even stated in some of his speeches that he would rather stand up and go to the polls if they wanted to force him to change what he considered the “heart” of his plan. He didn’t. And it’s not Puig’s tax reform that will eventually be approved. Not even Sanchez’s. This is that of Compromis and Podemos. The same practice we see in the tourist tax: President says it’s inappropriate, but forces partners to impose new tax At the same time, they do not cease to approve aid to the tourism sector, a voucher today and an Imserso bis tomorrow, as a result of which we taxpayers will pay ten subsidies for every euro we receive from what remains. , whether we travel or not. Having hashtags, why do we want consistency? And he consents.
The community with the worst finances but at the head of financial pressure in Spain will lower some segments and raise others. And no one will be satisfied with that. The distance between 20,000 winners and 60,000 winners is many times greater than between 60,000 winners and triple winners. But the 60,000 winners, with almost none of them reaching and 200,000 without having the beds of the recipients, finance the relief and join the ranks of those who have always felt excluded and no one represents them. Puig promised one thing and another popped up. So, for the fifteenth time, a delivery was announced, and we finally gave birth to a mouse. This journey did not require many blacksmiths. And even less if they will be filled with stones. Sic transit gloria mundi. Or what happens to the same thing: no one is surprised after what happened.