Fiscal policy positions itself as one of the main issues of public debate at the state level and also in Spain’s scenario of autonomy. Faced with a generalized context of inflation and an economy hit by the consequences of the war in Ukraine, the management of taxes is the focus of the strategy of the left and right blocs advocating the application of conflicting recipes within a framework. The campaign of the 2023 election process that started to fly. Everything points to the fact that the battle for electoral conquest will continue to fuel the lawmaking race to reroute taxes, but if there is any common denominator for progressives and conservatives, this is the starting point. collection Tax Office in Alicante increased until July 21.8%almost four points above the national average and achieved 2,632 million eurosEven more generous was the amount invested in taxes transferred into the Generalitat’s coffers. exceeded 745 million between January and August of this year 45.7% more than the same period of the previous year.
The withdrawal of the economy after the blockade created by the Covid pandemic and the inflation that triggered the shopping cart, and the Valencia Community’s employment creation for ten months without interruption until August are some of the factors that feed the tax. The income of the Generalitat and the State from what the people of Alicante pay. Three of the most important government taxes reflect this. Up to July 26% more was charged for personal income tax, for a total of 1.155 million; 18.9% more in VAT, which reached 1.193 million; Income from Corporate Tax was 14.4% higher, at 119 million euros. These are taxes administered by the central government, but they also have an impact on the Valencian coffers, as 50% of the income from VAT and almost the same income from personal income tax is transferred to the autonomous communities. To this income from taxes must be added others, such as VAT from large companies headquartered in Madrid, even if buyers pay the tax in the province, such as that received by the Madrid large taxpayer unit.
take home
Among taxes administered directly by Generalitat, the increase in collection was more pronounced. In the first eight months of the year, income Property Transfer Taxs resulting from home sales exceeded 528 million, an increase of 58%. In addition, Documented Laws, which tax the formalization of mortgages, among other things, increased by 19%, contributing 90 million euros to the regional fund. And pretty much the same percentage triggered the volume collected by the Inheritance Tax, which exceeded 79 million euros. In this case, the main reason was the increase in deaths due to the pandemic.
Is there room for fine-tuning in taxes? Is a tax change appropriate to deal with the current situation? This is a question to which almost the entire political spectrum of the Valencian Community has answered affirmatively. However, the amendment proposals do not seem to go in the same direction and repeat the trends advocated by the major parties at the national level. For now, everything indicates that Generalitat will encourage a tax change that will come into effect once the Budget Incentive Law is passed at the end of the year. Socialist Ximo Puig, head of Consel, announced this measure with the start of the political course, but has not disclosed any details for the time being. Puig underlined that this would be a reform expressed along lines of financial progress to benefit only low and middle income earners. Not more. The Generalitat head will detail the key axes of a proposal, but government partners, Compromís and United Podem. The Morlar were reluctant, above all, as they waited for the fine print of a proposal so far worked at the Ministry of Finance. At the national level, Puig is calling for a fiscal reform to harmonize taxes and avoid fiscal dumping, i.e. unfair competition administered specifically from Madrid, according to the complaints. That’s in the air, although what’s on the Pedro Sánchez Executive’s agenda, as announced by Finance Minister María Jesús Montero on Thursday, is to encourage tax on the great wealth. This is a proposal that government partners United We Can’s PSOE rejected months ago.
“Tax Revolution”
The main opposition group, the PP led by Carlos Mazón, has now not joined the financial revolution that rulers like those in Andalusia had begun to promote, announcing the abolition of the Wealth Tax and the deflation of personal income. tax in your community; that of Murcia, which will reduce personal income tax and also work on a 100% discount at Patrimony; or that of Madrid, with Isabel Díaz Ayuso at the helm, who led the heart-rending tax cut speech against the Government. A year ago, Mazón presented his own “tax revolution” with proposals that included abolishing the Wealth Tax, greater discounting of Inheritance and Donations, or reducing the regional division of the Property Transfer Tax and Personal Income Tax. Tax cuts are, in fact, one of the main axes around which popular discourse revolves, which has much in common with what Cs advocates. With no room for the opposition to manoeuvre, the proposals have already been launched in a key of choice.
Source: Informacion
Brandon Hall is an author at “Social Bites”. He is a cultural aficionado who writes about the latest news and developments in the world of art, literature, music, and more. With a passion for the arts and a deep understanding of cultural trends, Brandon provides engaging and thought-provoking articles that keep his readers informed and up-to-date on the latest happenings in the cultural world.