The tax reduction announced by Puig clashes with the approaches of Compromís and Unides Podemos

The Alcoi seminar of the Valencian Government closed with an agreement on the strategic lines of the future budgets, but without great advances and specificities in the tax reform proposal that the president of the Valencian Generalitat, Ximo Puig, announced a week ago.

NewsEditor
NewsEditor
14 September 2022 Wednesday 08:43
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The tax reduction announced by Puig clashes with the approaches of Compromís and Unides Podemos

The Alcoi seminar of the Valencian Government closed with an agreement on the strategic lines of the future budgets, but without great advances and specificities in the tax reform proposal that the president of the Valencian Generalitat, Ximo Puig, announced a week ago. The head of the Consell explained that he will be ready "in the coming weeks" with the idea that it be approved at the end of the year in the so-called accompanying law that complements the content of the regional accounts.

The problem is that the members do not quite see the president's proposal, since they consider that it collides with the traditional postulates of the left and places the Botànic in a framework where the right feels much more comfortable. In addition, in Unides Podem, they doubt the real effectiveness of this measure given the limited room for maneuver that exists in regional taxation. In this sense, they believe that it would have a greater impact to reinforce the social shield with aid to cushion the blow that the double scissors unemployment plus inflation can mean for many citizens.

Despite not criticizing the proposal in public, the Compromís roadmap does not include lowering taxes either. Sources from the coalition, which is the one that has control of the General Directorate of Taxes, explain that their senior officials in the Ministry of Finance are working on a readjustment of taxes to inflation.

They explain that their intention is not to “lower taxes” but rather that the new context of high prices does not force taxpayers to pay more than what was paid. Thus, as an example, they point out that the minimum exempt from IRPF could be touched to adapt it, but they emphasize that their work is not thinking of lowering the Tax on Transfers and Legal Acts or the Wealth Tax. "Another thing is that the PSPV, for its part, is preparing another proposal," they warn.

They believe that a general reduction in taxes would not exactly help combat inflation and they agree with Unides Podem that this type of announcement generates an unrewarding framework for the left and is far from progressive postulates.

At this juncture it seems complicated that a tax agreement that satisfies all parties can be reached and everything indicates that, without any wear and tear, the right can come out stronger from a miscalculation by the Botànic.

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