Feijóo’s party charges half on the autonomies

  • The popular demand a reduction of up to 10,000 million on taxes that are largely collected by the communities

  • The measures, to support low-income families and vulnerable companies, would be applied for one year

The PP assumes that the autonomous communities should assume approximately half of the tax reduction of between 7,500 and 10,000 million euros that the popular leader, Alberto Nunez Feijoo, asks the President of the Government. These tax measures are intended to offset the effect of inflation on families with lower incomes and the most vulnerable companies and, as proposed by the PP, would last for one year. The PP will send its plan to La Moncloa throughout this Friday, so that Pedro Sánchez assumes some of his initiatives in the face of next week’s parliamentary debate on the decree of measures to alleviate the impact of the war .

The PP proposes to the Executive a menu of different measures of a tax nature -which affect the personal income taxto the VATto the special taxes and to that of Societies– to negotiate its possible application with a maximum cost of between 7,500 and 10,000 million, in charge of the “over-collection” that, according to the popular, the Treasury will obtain due to the effect of inflation on prices.

It so happens that half of income tax and VAT collection is transferred to the autonomous communities, as well as between 58% and 100% of special taxes. “It would be reasonable for the autonomies to assume their share” of the budget cost, he admitted this Friday the Deputy Secretary of Economy of the PP, Juan Bravothis Friday in a meeting with the media.

In addition to tax measures, the PP plan includes measures to speed up the execution of European funds, starting by transforming some 4,900 million euros into tax benefits that are now currently proposed in the form of aid that, according to the PP, carry a heavy burden bureaucratic. The plan also includes proposals, without quantification, for greater efficiency in public spending.

tax menu

In particular, the fiscal menu of the PP includes a battery of measures whose degree of application it intends to negotiate with the Government, within a budgetary margin of between 7,500 and 10,000 million euros that, according to the popular ones, would be compatible with the objectives of reducing the deficit public that the Executive intends. Therefore, according to Juan Bravo, most of the proposals are unquantified. “Everything will depend on the combination that the government is willing to accept,” he reasons.

The fiscal menu includes six measures:

one.- A direct aid of between 200 and 300 euros for taxpayers with incomes below 14,000 euros, not required to declare personal income tax

two.- A complement in the personal income tax minimum for income between 14,000 and 22,000 euros. This supplement would be higher for the lower income bracket and lower as the income approaches 22,000 euros.

3.- Reduce the first three sections of the personal income tax rate (for income up to 40,000 euros) in some percentage that allows inflation to be corrected to some extent. The budgetary impact of this measure could range between 500 and 3,500 million euros, depending on the percentage by which it is decided to deflate the rate, as explained by Bravo. In particular, deflating the rate by 5% would have an approximate impact of 1,500 million, according to preliminary calculations by the PP.

4.-Lower the installment payments for taxpayers with income derived from economic activities. This proposal also includes a reduction inThe modules of the objective estimation system, to offset the increased costs.

5.- Reduce VAT on gas to 4% or 5%.

6.- Reduction of special taxes on fuels.

Vote in Congress

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Facing the parliamentary debate of the Government decree, next week, Bravo has not wanted to clarify what the PP will do if the Executive does not accept any of its initiatives. The coalition government must validate in Congress its royal decree with measures to mitigate the impact of the war in Ukraine and the PP has not yet decided its vote. “We will see what Feijóo decides if in the end there is no will to agree and what was signed at the Conference of Presidents of La Palma has not been fulfilled, where it was left in writing that it was necessary to lower taxes (…) They will be able to say that ‘no ‘, but they will have to explain it. in Navarre [PSOE] Some of these measures are already in force, so they cannot be very crazy if they are applied by other governments & rdquor ;, the deputy secretary of Economy of the conservative party has responded.

Validation has been complicated for the Sánchez government, since it has ERC, Junts and EH Bildu demanding explanations for the so-called ‘catalangate’ and it does not give them, hiding behind the fact that the law prohibits it from talking about what means and what procedures the government uses National Intelligence Center (CNI) for information. According to Citizen Lab, the cybersecurity group of the University of Toronto, 67 pro-independence leaders, including that of the ‘president’ of the Generalitat, Pere Aragonès, were spied on with the Pegasus system, a spy program that only governments can allegedly buy .