Tax cuts announced this Thursday by Generalitat president Carlos Mazón, Approximately 750,000 Alicante taxpayers will benefit and together these taxpayers could save 71.6 million euros. Experts think that the measures, especially regarding the purchase of housing, will have positive effects on citizens and may even have a certain stimulating effect on the economy. So far, so good. But what is not so clear to them is that such cuts can be sustained over time, given the complex debt situation in which the public coffers are sunk due to the regional financing model.
Based on forecasts managed by Consell for the entire Valencian Community, Cuts in personal income tax will mean savings of approximately 64.8 million euros for Alicante taxpayers. While the main item is expenditures on oral health with 28.9 million, it is followed by the purchase of prescription glasses and contact lenses with 22.8 million. Deductions of 9.2 million in expenses related to sports activities are listed below; Those related to mental health, 3.1 million; those with brain damage or Alzheimer’s disease: 685,000 euros; and those for rare diseases are 88,000 euros.
Measures regarding the Real Estate Transfer Tax will save citizens $6.8 million.. The largest amount, 5.2 million, is the amount corresponding to the discounted rate for habitual residence acquisition of young people under 35 years of age. The purchase of officially protected housing under the general regime remained at 881,000 euros, while the purchase under the special regime and for large and single-parent families, disabled people and women subjected to sexist violence remained at 674,000 euros.
So what do experts think about these measures? Alfredo Masó, professor of Fundamentals of Economic Analysis at the University of Alicante (UA), underlines that these may be suitable for families in a difficult period like the current one, although he is aware that $199 million will no longer be paid, but it is not a very high amount yes He points out the convenience of “the discounts being temporary, given the delicate situation of the region’s coffers”.
José María Gómez Gras, professor of Business Organization at the Miguel Hernández University (UMH) in Elche, believes: Measures that will facilitate access to housing are extremely appropriate.and “If it is to be done, it is because they have done the math and it can be done.”
Antonio Pérez, head of the financial commission of the Alicante College of Economists, expresses the same lines and agrees that the reduction in rates is correct so that young people can emancipate themselves. comes by other means” because There will be more mobility in the air conditioning of purchased houses and in the purchase of furniture or other items.
Ignacio Jiménez Raneda, former UA chancellor and professor emeritus of Foundations of Economic Analysis, is more reticent, noting: Loss of income is a problem in an underfunded and highly indebted community like Valencia. But he adds that in the end, everything comes down to political options. “Lowering taxes and reducing the public good is a respectable option, but I insist on how problematic it is.” he emphasizes.
Paloma Taltavull, professor of Applied Economic Analysis at UA, is also skeptical and doubts the scope of tax breaks on housing: “Big cities will not be able to benefit because there are not such cheap apartments.». He also believes that reductions in personal income tax will be minimal.
Finally, Luis Chinchilla, president of the Professional Association of Tax Consultants of the Valencian Community, thinks: Although he doubts whether the timing is right, precautions may be useful“given the state of the accounts.”
Source: Informacion
Emma Matthew is a political analyst for “Social Bites”. With a keen understanding of the inner workings of government and a passion for politics, she provides insightful and informative coverage of the latest political developments.