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The autonomies will renew the war for Heritage at the gates of the elections

Date: October 1, 2023 Time: 13:51:31

election year… fiscal battle year. And that of this exercise is motivated, among other things, by the open war between the autonomies that keep the Heritage tax subsidized and the Central Government, on account of the Temporary Tax of Solidarity of Great Fortunes, the new tax figure that entered in force in January to neutralize these advantages in territories such as Madrid, Andalusia and Galicia, and try to unify criteria. In the absence of the reform of the Financing Model, pending since 2014, which is one of the most controversial taxes in the national tax system -because of its historical evolution and the disputes it generates between the territories that want to abolish it and those that maintain it – has revived old controversies in full pre-campaign.

Recently, the Registry of Fiscal Advisory Economists (REAF) has calculated that, despite the fact that the tax was created to offset the bonuses applied by various regions governed by the Popular Party, taxpayers with a wealth of 40 million will continue to pay more in Aragon, Balearic Islands, Canary Islands, Castilla y León, Castilla-La Mancha, Extremadura, La Rioja and Valencia than in Madrid and Andalusia (which discounted it to 100%) or that in Galicia (which lowered it to 50%). In this way and, according to the REAF, eight autonomies governed by the Socialists have also been harmed with the approval of the tax on great fortunes in the national comparison. Added to this case is that of Catalonia, Asturias, Cantabria and Murcia, which applies to a net worth lower than that set by the ITSGF (3.5%), so their great fortunes will also have to pay the new tax.

What is happening with both taxes is a sign of the extent to which the current tax system “is destroyed”, in the opinion of José María Peláez, who was president of the Professional Association of Treasury Inspectors between 2004 and 2007. From his point of view Of course, the different tax reforms have been based on putting a patch on another patch and no government has been able to design and reform the model reaching important agreements with the rest of the parliamentary groups. The situation in which Heritage is “disastrous” and, now, the Government has counterattacked by creating another tax, which comes to “add more fuel to the fire.”

Peláez recalls that as it is a state tax within the block of those that were transferred in their entirety to the autonomous communities (as with Inheritances or Documented Legal Acts, their management, inspection, regulatory capacity and collection were passed ), they cannot delete it. Despite this, there are territories that have incurred the “legal trap” of bonusing it to 100%. It is a tribute that has many defenders and many detractors and that, in his opinion, is still a ‘zombie’ tax. It was suppressed in 2009 by the Government of José Luis Rodríguez Zapatero and that of Mariano Rajoy recovered it in 2011, initially on a temporary basis, as a result of the financial crisis. There are even those who consider that it is “taxing great fortunes twice,” recalls Peláez.

‘The desert of the tartars’ or the eternal financing reform

Currently, the Wealth Tax is declared by those who have an average personal income tax income of 143,000 euros, although it barely collects around 1,200 million euros each year, of which practically half is received in Catalonia. Madrid barely gets 2% of some “loose fringe”. It is precisely this disparity in collection between one autonomous community and another that, from his point of view, is a contradiction. The logical thing, he points out, would be to suppress it in all regions or unify it so that there are no differences between territories (to avoid what is known as ‘fiscal dumping’ that some regional governments denounce and that ends up taking resources away from territories that do not have the margin to put into March tax incentives).

He also regrets the case of those autonomous communities that advocate suppressing Patrimony, Inheritance and lowering the Personal Income Tax, and then have Health or Education made a mess or are on the other hand asking for more resources from the financial system. The reform of the current model, which expired almost a decade ago, has once again become the unfulfilled promise of yet another government, in this case the coalition government. In mid-2021, the department headed by María Jesús Montero created a group of experts to study a tax reform that incorporates important changes, as well as a proposal for tax harmonization of the autonomies. That report practically fell on deaf ears.

“The territories are not taxed, the citizens are taxed. Citizens have to have homogeneous tax burdens based on their economic capacity and their level of income, wherever they live. Tax harmonization notes the regulatory capacity of the communities,” the headline exhausted. of the Treasury and Public Function for less than three years. In the end, the tensions between autonomies and the inability to reach agreements have weighed more heavily and the government has been able to calm the waters thanks to the improvement in income. Quress Quress Quress Queres Ques QueS Q. An Brought With It The Good Behavior of the Economy (It Grew In 2022 At 5.5% For The Second Consecutive Year) And Inflation Has Become The Autonomies Will Use The State This Year The Record Figure Of 134,336 Million , 24% more than the previous year, in terms of transfers of deposits from the system.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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