• Politics Puig dismisses the Madrid tax: "To compensate for the capital effect, it can be done in another way"

  • Territorial debate Ximo Puig's campaign against the 'capital' and Ayuso turns against him in Valencia

Fiscal policy -and, specifically, the reduction of taxes- will be one of the main workhorses of the PP led by

Carlos Mazón

to confront in the remainder of the legislature with the model of the left applied by the Government of

Ximo Puig

. And this because, according to the

popular

thesis

, "the Valencian president has a management problem, not money", in the words of the PP Economy spokesman,

Rubén Ibáñez

, which in turn contradicts the official thesis that it is under-financing Chronicle of the Valencian Community - and, more recently, the supposed

fiscal

dumping

of Madrid - which justifies a policy of progressive tax increases since 2017.

The accounts made by the PP are as follows: since 2015, what the Generalitat enters through the autonomous financing system has increased by 3,217 million euros, while in parallel,

2,623 million

have been left

unimplemented since 2016

only in social policies, education and health. "More taxes in the Valencian Community do not translate into better social policy but rather more debt", criticizes Ibáñez. Specifically, 11,000 million of debt.

Without going any further, Puig regretted this week that the Valencian Community is

12 points below the Spanish per capita income

, an anomaly that partly attributed to the beneficial capital effect that concentrating high incomes and a good part of the economic activity of Madrid has for Madrid. Spain. Although not necessarily with a tax on Madrid, the socialist baron has put on the table the need for the rest of the autonomies to be compensated in some way for this "income divergence".

But if the Valencian PP looks to the Government of

Isabel Díaz Ayuso

to point out the benefits of a generalized policy of low taxes, the left-wing parties of the Botànic Government defend their reform. Starting with the Socialist Minister of Finance,

Vicent Soler

, who explains that, if a reduction of 0.5% of the tax rates were applied for all income levels, the savings for a low-income family would translate into little more than 3 , 36 euros, compared to 1,693 euros of savings for incomes above 175,000 euros.

With this criterion, for this 2021 the personal

income tax

was raised

with two new rates on the regional scale: 27.5% for incomes above 140,000 euros and 29.5% for those above 175,000 euros. The Generalitat defended the increase because it would only affect 5,000 taxpayers, but a report from the Registry of Tax Advisory Economists places it at the head of Spain when it comes to taxing high incomes (with 54%, after adding the state part and autonomic) and without being in the queue to tax casualties.

Another of the taxes that has risen in practice is that of

Patrimony

, with the reduction of the exempt minimum from 600,000 to 500,000 euros.

Much criticized by the regional employers' association CEV, the business class has repeatedly requested its removal to paradoxically achieve a regional harmonization in line with Madrid, where it is subsidized at 100%.

So the PP is already preparing its own "tax revolution", with the promise of

"touching all taxes"

in the Valencian Community to leave behind the Botànic reform justified in its day because the Valencian tax system was "the most regressive in Spain ".

According to the criteria of The Trust Project

Know more

  • PP

  • Valencian Community

  • Madrid

  • Spain

  • Taxes

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