The fiscal measures plan announced by the central government will have practical ramifications, beyond the political repercussions of the PP and its continued pulse with some autonomous communities, including Valencia. And tax deductions that are part of the offer they will benefit nearly half a million workers 6,200 companies as well as the province of Alicante. The initiative was welcomed by the unions on the grounds that it would help families fight inflation. However, entrepreneurs find this completely insufficient due to the sharp increase in both energy costs and raw materials. What both parties agree on is the need to address it. structural tax reform.
The government proposal foresees a tax deduction for income from work of less than 21,000 euros per year, which in the case of the province of Alicante will reach around 500,000 employees. 70% of the total, According to tax office data. Specifically, the job income deduction will be increased from 18,000 to 21,000 euros in the average salary, and the tax-payable minimum wage will increase from 14,000 to 15,000 euros. Thus, an employee earning 18,000 euros will save 746 euros per year and pay 40% less, according to estimates published by the Treasury.
The package offered by the government also includes an exemption through a 25% to 23% reduction in the nominal rate of corporate tax for companies billing up to one million euros. According to the information given by the Chamber of Commerce, Alicante companies that can benefit from this measure are 6.200, There will be 4,900 more, who won’t be able to do it because they have higher turnover than claimed.
And what do the actors directly involved think? Unions applaud the measure as it will help workers have less difficulty coping with the overall rise in prices. Yaissel Sánchez, general secretary of the UGT at l’Alacantí-Les Marines, believes that the reduction in taxes has affected such a high percentage of workers in the state “because Prices here are below average. and, in addition, they are not being updated as they should be in the context of current inflation.” Raúl Alcocel, CC OO’s secretary in the Central Regions, thinks something similar, but he is also “demanding structural reform. reinforces progressiveness, so that those who have more contribute more with their taxes”.
Salvador Navarro, president of the Valencian Community Business Confederation (CEV), is positive about the tax cut measures for the self-employed and small businesses, but adds: dissatisfied with the limitation of loss compensation in corporate tax. “In a context similar to the current situation, reducing the likelihood of consolidated groups’ subsidiaries to recover their losses will have negative impacts on investment and limit job creation,” he states. CEV, in this sense, insists on lowering personal income tax rates.
Carlos Baño, president of the Alicante Chamber, said that the discount applied to companies “totally inadequate, especially if we compare it to rising energy tariffsHe thinks that the reduction of fiscal pressure should go further, and that this should be accompanied by “a reduction in public spending by political parties”. You don’t need all that advice.”
Both Pepe Serna, head of textile employers, and Marián Cano, the shoe company, consider the measure too inadequate, as there are many companies with turnover exceeding one million euros. This is also the view of Nuria Montes, general secretary of hotel management.no one remembers usLuis Rodriguez, president of the metal federation, has called for deeper financial reform, while José Antonio Pastor, director of toy bosses, calls it positive that “with these sales, there is more money on the move.”