The majority of autonomies lower the tax burden with the highest collection

Practically all the regional governments have opted to reduce the tax burden of their taxpayers given the increase in collection.

Thomas Osborne
Thomas Osborne
05 December 2022 Monday 01:40
30 Reads
The majority of autonomies lower the tax burden with the highest collection

Practically all the regional governments have opted to reduce the tax burden of their taxpayers given the increase in collection. Catalonia stands out, which has systematically refused both to deflate personal income tax and to introduce reductions in the sections, since for years it has been the community where low incomes pay a higher tax. In fact, in the accompanying budget law, which is the one in which tax modifications are traditionally proposed, nothing appeared.

The political color of the Government is not what this year has defined whether a tax reduction was carried out or not. The socialist Ximo Puig broke the fire, who introduced an almost universal income reduction. Only large incomes, representing 2.6% of taxpayers, were left out. It all began around the holidays when the communities governed by the PP began a race to lower taxes led by the president of Andalusia, Juan Manuel Moreno Bonilla, with the suppression of Heritage, which was later seconded by Galicia by cutting the tax by half. what their taxpayers paid. Those were the main movements that led the Pedro Sánchez government to improvise a tax on great fortunes in record time.

The three models used by the autonomous regions to lighten the tax burden are through the deflation of the regional income tax rate, as is the case of Madrid; the reduction of rates for certain incomes, as is the case of Castilla y León; or direct deductions, such as Navarra. Catalonia also announced some deduction but in the words of the previous Minister of Economy, Jaume Giró.

Deflation consists of increasing the level of the tax brackets to prevent a salary increase from causing you to end up paying more.

Madrid, Galicia and Murcia will deflate by 4.1% while Andalusia will do so by 4.3% and the Basque Country by 5.5%. The other regional government (that of Navarra) will apply a 3% deduction on work income for income of less than 32,000 euros. In Castilla y León the rate will be reduced from 9.5% to 5.3%. Castilla-La Mancha does not deflate, but introduces new deductions.

The personal income tax reduction approved by the socialist government of Javier Lambán in Aragón is for everyone, with the exception of the 6,300 taxpayers with the highest income. The minimum reduction is 100 euros. Cantabria has introduced a deduction for the 127,000 taxpayers with incomes of less than 30,000 euros. In the Canary Islands, the average tax reduction per taxpayer is just over 100 euros.

Asturias has approved several deductions, and the Balearic Islands have increased some of those that already exist.