The gift of inflation to the State at the expense of the taxpayer: 11,000 million more in personal income tax and VAT only until September

Inflation is having a huge impact on citizens and, consequently, an exceptional increase in the income of the Tax Agency and also of the Provincial Treasuries.

And this increase is especially notable in personal income tax and VAT, where the Bank of Spain calculates that the rise in prices caused taxpayers to pay

only in the first three quarters of 2022. That is, only up to the month of September.

The figures, to which this newspaper has had access, are based on a report on the evolution of public revenue after the pandemic that the body led by Pablo Hernández de Cos has recently published, and most of those more than 11,000 million come

.

Just for this tax, the additional contribution is 6,400 million, and this data is directly related to the decision not to deflate the rate, not to adapt it to the increase in inflation.

This is a widely recommended practice in the economic sphere, but the Ministry of María Jesús Montero has always refused to apply this measure.

The result is that workers who register salary increases to face inflation have to pay more for income tax, despite the fact that the increase is the result of the increase in the CPI and there is no gain in purchasing power.

In fact, the salary increases are not reaching the level of inflation, so there is

of power for the taxpayer: due to the abrupt rise in prices that is not fully compensated and due to the higher payment of taxes.

The data estimated by the Bank of Spain are in terms of National Accounts, which means, among other things, that the income from the regional Treasuries is also taken into account.

Here the case is different, because for example the Basque Country did decide to deflate the rate, so this effect, if it occurs, is much less.

As for

, and the transmission is clear: as the price of the products that are consumed rises, the proportional part of the indirect tax with which they are taxed rises.

The impact in this case is also widespread among all citizens, although it is especially harmful in terms of purchasing power for the most limited incomes.

"In 2022, the impact of inflation is particularly high in VAT, due to increases in consumer prices, and in personal income tax, due to cold escalation," notes the Bank of Spain, which in the case of income tax Income refers to the targeted phenomenon of wage increases to limit the loss of purchasing power and higher tax payments.

The fact that the figures are calculated in terms of the National Accounts also causes some differences with respect to the figures from the Tax Agency because the returns are computed in a different way, some income is moved from year to year and those referring to the payment of Social Security contributions.

And if the payments for Corporation Tax are added to this, the result is that inflation explains "

", says the Bank of Spain, which specifies a figure of increase additions of 17.400 million.

All these figures and affirmations contradict, in a sharp way, the explanations and arguments that the Government uses regarding the impact of inflation on income.

In the Executive they always point out that yes, inflation explains a part of the increase in income, but that the greater proportion comes from the recovery of the economy and the creation of employment.

That more income tax is paid because there are more workers and that more is consumed because there is more money.

.

historical collection

And all this, inflation and also the recovery, made 2022 close with a historic collection figure.

The Tax Agency has not yet offered the data for the last month of the year and, therefore, those for the closing of the year, but with the data accumulated up to November it is already known that personal income tax exceeded 100,000 million

.

That number already exceeds the slightly less than 95,000 million that were registered in all of 2021.

In addition, VAT was already close to 80,000 million, and the set of tax revenues (in this case, social contributions are not included) was almost 240,000 million.

According to the criteria of The Trust Project

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