Ximo Puig, the president of the Generalitat, is actively engaging with the central government to align tax strategies across autonomous communities. He supports a wealth tax and argues for avoiding tax dumping while advocating for a coordinated approach to income taxes, especially for earnings up to sixty thousand euros. This stance reflects a broader effort to balance regional fiscal autonomy with national measures aimed at stabilizing households facing rising living costs.
In recent weeks, tensions between the Generalitat and Madrid have surfaced over fiscal policy, including credits tied to incomes up to sixty thousand euros and a Valencian reform plan that could widen the gap with the central government. These dynamics have drawn pointed comments from the regional leadership and have highlighted disagreements with the central administration, which has favored tax reductions along right-leaning lines. Even so, the central government has introduced its own package of fiscal steps in response to inflationary pressures. Puig has consistently framed tax policy as a tool that can ease the financial burden on families, a theme that remains central to today’s political dialogue.
Puig has argued that preserving a high-earning wealth tax is a mechanism to prevent interregional fiscal dumping, particularly at a moment when regions like Andalusia are aligning more closely with Madrid. The proposal to remove the wealth tax in some territories has provoked intense debate, with Galicia reportedly agreeing to offer a 50 percent boost to this tax. The national conversation about taxation thus continues to evolve, reflecting different regional priorities and balancing acts between growth, equity, and public services.
The taxation debate also stays at the forefront of Valencia’s political arena, where Puig’s partners in the Consell, including Compromís and Unides Podem, have pressed for amendments to the initial plan. Their position emphasizes higher taxation on high incomes and large estates as a way to compensate for the revenue impact of proposed tax cuts that could affect middle and lower-income households. Puig has maintained that the framework established in the broader policy dialogue remains intact and underscored a clear guiding philosophy: these fiscal tools are designed to support social policy objectives and the welfare of citizens. This ongoing discussion continues to shape regional fiscal strategy, with a focus on equity and sustainable public finance.
In Puig’s view, the Generalitat should prioritize measures that assist families and the middle class facing difficulties, a stance that resonates with a large section of voters who are feeling the pinch of inflation. He has suggested that improvisation in taxation should be kept to a minimum, advocating steadier, principle-based policy making that emphasizes predictable fiscal rules and long-term planning. The topic is expected to persist as the government explores ways to reconcile revenue needs with public investment, ensuring that social protection and economic opportunity go hand in hand.
Asked about the proposals from government partners, Puig affirmed a readiness to engage in dialogue with them and with other political forces. He reiterated that the Generalitat remains committed to supporting people who are experiencing hardship and to fostering employment growth and regional development. This cooperative stance underlines an approach that blends principled tax policy with practical governance, aiming to deliver tangible relief to households while maintaining fiscal discipline and continuity in public services.