• Politics The CCAA of the PSOE dismantle Sánchez's fiscal strategy: "Each one is going to look for their solutions

The Government is finalizing a

tax cut for low incomes

and the Treasury is studying at a forced pace how to apply it in order to include it in the package of measures that it wants to present tomorrow.

One way is personal income tax

, not so much through deflation but rather with "selective rebates" that accompany the increase for high incomes, although at this point, they explain from the department of María Jesús Montero, there is not yet a closed decision.

The measure, in any case, falls within the scheme of action that the Minister of Finance has always defended: that those who have the most "

contribute more

" and help those who "are having the worst time".

In fact, today she herself has pointed out in Congress that "massive tax cuts" is not the way to go, arguing that the IMF and the OECD say so.

But he has indeed pointed out in the corridors of Congress that it is recommended that these reductions be "

selective, surgical

";

"and that those who have more contribute more".

And also in this discourse are the measures for the benefit of the self-employed and small and medium-sized enterprises (SMEs) that are also contemplated, all of this in parallel with the

increase in personal income tax on the highest incomes

or the new tax on the rich that also will be presented.

A

fiscal reform

, therefore, that is not as ambitious as the one that Montero intended but that does involve numerous measures and that, moreover, is a clear response to the

fiscal pressure

exerted by the PP, and to which part of the PSOE itself.

There are communities determined to lower personal income tax -Valencia, Navarra, the Canary Islands...- and others are studying it -Aragón, Extremadura...-.

This internal pressure, since it is also part of socialist regions, has disrupted Pedro Sánchez's strategy and forces the Government to respond.

The Government this week has been modulating its speech, while the communities made their own decisions, ignoring La Moncloa's warning not to enter the "

spiral

" of tax cuts.

From the Government before it was a closedness against the "fiscal populism" of the PP and now there is talk of "

a fair distribution of fiscal burdens

".

The Minister of the Presidency, Félix Bolaños, has called for a "

fair distribution of burdens

".

"Downward tax competition interests me, but I am very interested in upward competition from the welfare state."

There is also, in the Government, concern about

how "the spiral of tax reductions

of the autonomous communities" is seen and perceived in Brussels.

They remember that Spain is going to receive 140,000 million European funds and that would collide with the approach of receiving money and lowering taxes.

"You have to be consistent, rigorous," they say in the Treasury.

In addition, they do not like the idea that Europe is betting on tax harmonization to put an end to the so-called tax havens, and within Spain there is a struggle to lower rates, in the opinion of the Government, by tax dumping.

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