• Controversy: Critics of the PSOE to the "tax haven" of Madrid after announcing Díaz Ayuso a historic drop in taxes
  • Taxes. Isabel Díaz Ayuso announces "the biggest tax reduction in history"

The popular Isabel Díaz Ayuso appeared this week to her inauguration as president of the Community of Madrid with the announcement that she will apply «the biggest tax reduction in history» in the region. This head has again released the spring of the already recurring criticism by autonomous governments led PSOE that the Executive of the Puerta del Sol practices tax dumping .

Its new manager defends himself against the accusation of unfair competition: "If ours is a tax haven, yours is hell . " And it challenges the autonomies with the same collection regime as the Madrid one to do the same thing that the PP has done here for the past 16 years. "We have more jobs than ever and that is when we pay less taxes," he says in a conversation with THE WORLD.

Díaz Ayuso has pledged to cut half a point in all the IRPF regional sections, a general reduction that will benefit more than three million taxpayers and will be accompanied by new deductions in the declaration of income for families, youth and freelancers. Together, it is estimated that Madrid households will stop paying 300 million euros a year.

And this remarkable reduction of collection will not affect the budget to finance basic services such as health or education? "Not at all," says the Madrid president, who will officially take office as such on Monday. "Being the economy that has reduced the most taxes and for more years, we are the ones that attract the most companies , which contributes to generating more income," he argues.

One of the first measures that will be launched in the new Government of the Community of Madrid, a coalition between PP and Cs, will begin the study to apply "as soon as possible" a tax reduction for which taxpayers may pay up to 5.5% less. According to Díaz Ayuso, it will be the Ministry of Finance that decides “at what time it is most effective to do so in order not to create an imbalance in the accounts”.

The popular ones argue that, despite the generalized nature of the reduction, it is a measure that "progressively benefits lower incomes . " They also remember that Madrid already has the lowest rate of personal income tax in Spain, 9%, and that after the new cut will be reduced to 8.5%.

"All the autonomous governments that share the same tax regime have the same mechanisms to raise or lower taxes and to attract employment," the Madrid president responds to criticism from PSOE leaders. "What they have to do is lower taxes too and they will see how in a magical way there are more people who are encouraged to start businesses and more foreign investment arrives," he adds.

According to Díaz Ayuso, there are regions that have "a great quality of life" that added to a tax relief similar to that of Madrid would allow "young people, freelancers and entrepreneurs of other autonomies also wanted to live there." And he adds: «The Valencian Community, for example, could do exactly the same. What they have to do is put the batteries and manage well » .

«The Government of [Pedro] Sánchez is threatening to raise taxes and not make basic reforms and that is what will cause the economy to start to suffer and there is a recession in investments because doubts, instability are generated ...» , also argues the new baroness of the PP, which has already made it clear that he will try to be a counterweight to the policies of the central executive. In fact, in his investiture speech, last Tuesday, he warned that, if taxes are raised on the state scale, Madrid will lower them further "to compensate, if possible, socialist fiscal voracity."

Finally Díaz Ayuso denies that the capital of Madrid places the region in an advantageous position for the creation of new companies. «The Community has been operating since 1983 and we were not always the first economy in the country; in fact, at that time we were the fourth. Now we are receiving companies from other autonomous communities fleeing the climate of instability, confrontation and aggressive taxation , ”he concludes.

According to the criteria of The Trust Project

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