Finance Minister María Jesús Montero announced this Thursday the new tax on large fortunes and the IRPF’s measures to support middle and low incomes. increase the tax advantage to 21,000 Euros something that will benefit 50% of taxpayers currently applied to income of up to 18,000 euros. These are some of the main axes of tax reform promoted by the central government, the measures are only made public. three days after the socialist baron With more weight, Consell president Ximo Puig will kick off the tax cut race sponsored by PP-led communities. Passing before the head of the Generalitat to retouch the taxes was released. Significant fire between Valencia and Madrid. It was interpreted that Puig, playing the right, destroyed the speech of La Moncloa and Ferraz, and made regional cuts for incomes of up to 60,000 euros in personal income tax. Now, Pedro Sánchez’s executive is struggling with his own measures, which include easing the tax burden of only the least-earning 50% of the population. Moreover increase the pressure on great wealthIt’s an area that Puig didn’t want to enter until now, but that his partners Compromis and Podem still demanded. On the second day of the general policy debate in the Valencian Parliament this Thursday, it’s something the opposition has once again blamed against Puig’s proposal for decaffeinated.
Up until this Wednesday, direct messages from the Government had been constant to show their opposition to Puig’s path in tax matters. It was made by the first vice-president of the government and the Minister for Economic Affairs and Digital Transformation. Nadia Calviño and also Montero. Both emphasize questioning “race to the bottom” in tax matters they wanted consistency because they were the same ones that some autonomous communities were running and in addition, were demanding more resources from the Government. Meanwhile, PP was put on a plate so that they could criticize the central Executive, whom Puig urged to follow in their footsteps in the Community. The veiled messages continued this Thursday. While Montero appeared to unveil the keys to tax reform, he said major tax cuts should be avoided and not run into a race, as public services must be maintained. For all these reasons, he demanded the responsible use of fiscal authority, although he stressed that this was something that fell within the autonomous powers. Accordingly, he argued that the most appropriate thing was to follow the line set by the Government. “We protect 50% of workers in our country with a €746 measure that has a high impact for them, compared to the 20-odd odds to which any deflation contributes, and it is also selective because it only and exclusively benefits the people we have to protect,” the minister said. He added that the government’s tax package will report net tax revenue of 3,144 million euros over the next two years and achieve a “model of a fairer society”.
As Montero advocated a new package of government measures, the taxation debate once again set the Valencian Parliament on fire. PSPV argues that the tax reform proposal announced by Puig is in line with the Spanish Government and international organizations making a cut for the lower classes, but without “cutting a hole in the collection” that would endanger social services and will now do so. It will be finalized within the Consulate. His partners at Botànic stressed that this is simply an unclosed proposal, that it must continue to be negotiated at Consell to “maintain” the welfare state. “Botany’s tax reform is not what Puig has declared, it needs to continue to work harder,” he said of Compromís. On the contrary, they complained to the PP and Cs opposition that this was another “whose announcement, a fictitious proposal that they did not bring to this Assembly” and that it was inadequate as well as not implemented.
Therefore, the PSPV Spokesperson for Economy, José Munozhe “absolutely” rejected this reform. stop talking It was promoted by Pedro Sánchez and assumes an approach to PP, but actually emphasized that, Going online from the Spanish Government and stressed that Europe “reduces the incomes of the people with the least income, but continues to invest in the Welfare State without making a hole in the collection”.
Announcing that the specification will be discussed within Consell, Muñoz pointed out that this “complex” debate should be evaluated according to who benefits from the reform. For incomes below euros, its proposal will benefit 0.2% of the population as it benefits 97.4% of Valencians, while higher incomes “will continue to pay the same. Also retrospectively, “it will be seen how you paid less this year”.
In this context, he stressed that public forces should invest in their citizens in the face of this crisis, but warned that the PP’s proposal would mean the following. Stop entering 1500 euros Puig’s being “selective” predicts a reduction of 150 million, which will be “compensated by the collection we got this year”, while at least for Valencians it has “a very clear impact on utilities”. Let the people see and decide, because the Socialist Party will always be on the side of the social majority,” he said.
However, the trustees of Compromis, father oakClarified that Puig’s statement corresponds to actions taken so far, but stressed: “Botànic’s tax reform is not what Puig has announced, we must continue to work harder”. In this sense he insisted. they knew about the announcement the night before the argumentbut it should be “it’s not over, it hasn’t seen the light yet, and when it does, it will be hand in hand with all Botànic” and “not sooner or later, because families need it, that’s why”. can’t pass this class” .
When asked about Puig’s ways of explaining in this sense, he said, “What we value is the common ground where Botànic is fully united, and these are the facts.” “It is true that Puig has the ability to explain what he values, but Botànic’s collaboration is another work that we are very pleased and pleased with. It should be converted into a consular contract. This will be reflected in the budget law or in a decree”. He therefore stressed that “reform should protect public services and calculate accordingly, contribute more to those who have income and more”.
Similarly, from Unides PodemFerran Martinez pointed they knew before discussing the announcement –without specifying when– and accepted it reform not closed and “needs to be negotiated” Within the council.
Martínez explained that it coincided with the reform announced by Puig as it conformed to the progressiveness they advocated, but cautioned that he “assumes a loss of financial income”. It therefore requires that this offer be “completed” to “make up for lost revenue” by asking for a small amount. additional effort for higher incomes and assets“.
Thus, he stressed, Botànic “has already implemented two tax reforms that improve collections and progress, and we are a more progressive community.” “This is Botànic’s legacy and our roadmap for the future, and that’s what we’re proposing to our partners,” he said.
“Another Ximoannouncement”
In contrast, from PP Ruben Ibanez He pointed out that Puig’s reform was “invisible” and “wrong”: “Puig did what Ximo Puig did: make a big “Ximoanuncio” without recording it so that it can be discussed today, he reproached him.
However, he stressed that the PP “has managed to change the mental dogma of the left: it is good to lower taxes now, and that does not mean reducing services.” “These are two big lessons the left has learned; we don’t know how it got from there because the document was not presented,” he said.
In line with this, “to miss an opportunity too quickly” made him ugly because he stated that the reform will only come into effect “in June 2023, when people are taxing personal income.” “Puig is there to make the announcement, not provide solutions, and that’s the difference between a coherent fiscal policy and Puig’s confetti policy.”
Similarly, the trustees of Cs, Ruth Merino, criticizing Puig’s “ghost reform” and showing that he didn’t believe it: “I don’t believe it until I see it.” In any case, he pointed out, this was “inadequate” because with the reform his party advocated, it would mean a savings of 650 euros for families compared to Puig’s 100 euros savings. “It’s just a patch,” she complained.
tax package
Specifically, at a press conference, Montero stated that the new tax will be implemented in 2023 and 2024 and will consist of three tranches: net worth between 3 and 5 million, 1.7% payable; between 5 and 10 million, 2.1%; and over 10 million, 3.5%. With this new tax, which will affect around 23,000 taxpayers (0.01% of the total), the Government expects to raise 1,500 million euros. The tax will avoid double taxation as the fee paid for the Wealth Tax can be deducted in the new tax.
At the same time, the Government will increase by one point, up to 27%, taxation of income from capital in personal income tax of more than 200,000 euros, and for capital gains over 300,000 euros, to 28%, two more points. It hopes to raise 204m euros with this measure and will affect 17,814 taxpayers. Alongside this increase in high incomes, the Government will also approve personal income tax measures that support middle and low incomes, increasing the tax benefit currently applicable to incomes of up to 18,000 euros to 21,000 euros. This measure will save € 1,881 million and benefit 50% of taxpayers. Likewise, income from work of more than 15,000 euros (more than 1,000 euros from now) will be exempt from personal income tax. In addition, in this tax, the net return of the modules for the self-employed will increase by 5% and the deduction will be increased from 5% to 7% for deductible expenses that are difficult to justify in taxation under the simplified direct estimation regime. It will benefit more than 577,000 self-employed people who will save 184 million euros.
The financial package Montero offers today also includes changes to Corporate Tax. In particular, the nominal rate is reduced from 25% to 23% for small companies with a turnover of less than 1 million Euros. The economic impact is 292 million euros and more than 400,000 companies will benefit from it.
Likewise, in this tax, the ability to compensate the losses of the subsidiaries in the consolidated groups will be limited to 50%, and this will affect 3,609 large companies and will be temporary. With this measure, the Treasury expects to collect 2.439 million between 2023 and 2024.
The rate for feminine hygiene products in VAT will be reduced from 10% to 4%.
With all these measures, the Government plans to raise another 3,144 million euros.