Saturday, January 28

The Government urges the barons not to fall into the “spiral” of tax reductions

The Minister of Finance, María Jesús Montero, and the Economic Vice President of the Government, Nadia Calviño, upon their arrival this Wednesday at the control session of the Government held in Congress / Eduardo Parra / Europe Press

The Minister of Finance insists that you cannot ask the Executive for more money with one hand and give up part of the collection with the other and argues that it is difficult to justify a reduction in personal income tax to the EU when it is helping Spain with 140,000 euros

Paula de las Heras

The first socialist regional president to cross the bridge was, on Tuesday, the Valencian Ximo Puig, but there are already others, such as the Aragonese Javier Lambán, the Castilian-Manchego, Emiliano García-Page or the Navarran María Chivite who threaten to undertake a reduction in the personal income tax. In the Canary Islands, the Deputy Minister of Finance, Fermín Delgado, already said weeks ago that he was working in that direction, although President Ángel Victor Torres cooled the matter on Wednesday. And in Cantabria, Miguel Ángel Revilla, warned his PSOE partners that “if the tide goes that way” he will not be left out. It is a cascade that erodes the Government’s discourse, tremendously critical of the IRPF deflation proposals made so far by the PP. And for that reason, the Minister of Finance, María Jesús Montero, asked the barons this Wednesday not to get carried away by the “spiral” of the popular and open a “calm debate.”

Eight months before the elections in which the majority of presidents risk their continuity, the need to give a response to citizens who are seeing how inflation reduces their purchasing power every day is pressing. But the minister argued, in the corridors of Congress, that precisely for this reason “coherence” must be maintained and warned the autonomous communities that it makes no sense to renounce part of their own collection with one hand while with the other they claim more money to the Government to reinforce social services.

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surgical rebates

The also deputy secretary general of the PSOE, who is negotiating with United We Can a package of selective tax increases – among which would be the new tax on large fortunes, an increase in personal income tax for capital income and formulas to bring the effective rate of Corporation tax paid by large companies at a nominal 15% – did not deny that in some cases taxes can be reduced. The Executive has done it in the last year, in which it has lowered the VAT on electricity and gas. But she insisted that these cannot be generalized.

The Government insistently recalls that this is now the doctrine of organizations such as the OECD, the ECB or the IMF. “Massive tax cuts are discouraged, it is advised that they be surgical, that the most vulnerable population be protected and that those who have the most contribute more,” Montero remarked. The deflation of personal income tax would not fit, government sources unequivocally admit, in that criterion even though the Valencian Generalitat insists that its measure will only affect income below 60,000 euros.

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