Revised Analysis of Valencian Tax Debate and National Fiscal Reform Intentions

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Ximo Puig, the president of the Valencian Government, has rejected ending the Will tax on Tuesday, advocating for a measured harmonization of displaceable charges to prevent fiscal dumping. The remarks came during an interview aired by TVE and organized with Europa Press, in the context of Juanma Moreno’s announcement about abolishing the wealth tax and lowering personal income tax. This stance is part of the trajectory followed by the PP, led by Alberto Núñez Feijóo. Carlos Mazón, the PP’s regional leader in the Valencian Community, is presented as a key advocate within this economic narrative. The tax reform Mazón promoted during the 2023 campaign for the presidency of the Generalitat has become a central theme in his public discourse about the economy.

“In a time of crisis like this, financial disarmament is not the right path.” This is the position emphasized by Puig, who also suggested forthcoming tax reform while making it clear that his approach will not mirror the Popular Party’s line. The head of the autonomous government underscored the need for a comprehensive reform at the national level that respects constitutional provisions and aims for progressivity. In practical terms, the plan would prioritize households with fewer resources and would not reduce taxes on higher incomes.

In a moment marked by unusual challenges, Puig stressed the importance of staying attentive to help working families weather the winter without leaving anyone behind.

Know who has lowered taxes

When talking about tax reductions, the focus is on implementing changes carefully and then identifying precisely which groups benefit from the cuts. Puig argued for acting with the utmost responsibility given the potential benefits and drawbacks of tax relief.

Likewise, the socialist leadership highlighted that the Valencian Community could adopt additional measures to support the broader social majority through a fair and balanced fiscal policy. He pointed to initiatives already taken this year, including universal free education for two-year-olds in the Valencia region and the provision of free textbooks, a policy that has seen variations in uptake across different regions.

Puig’s remarks on resisting fiscal dumping led to notable political friction with some of the PP’s strongest voices, including Isabel Díaz Ayuso, the head of the Community of Madrid. At the same time, Feijóo reminded audiences that the PSOE led by José Luis Rodríguez Zapatero had aligned with the wealth tax at the state level in the past, urging opponents not to resort to demagoguery in fiscal policy and to respect the autonomous powers of regional governments as they were defined before the central reforms were implemented.

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