The growing competition between the autonomous communities to announce tax cuts and the abolition of certain taxes has opened the debate on their management just a few months before the start of the electoral “super year” of 2023, when they are planned . municipal, regional and national elections.

The Minister of Inclusion, Social Security and Migration, José Luis Escrivá, fueled the debate on Tuesday by declaring himself in favor of greater fiscal centralization of the State to avoid the “nonsense” of the tax competition between communities.

The Minister of Inclusion, Social Security and Migration, José Luis Escrivá, during a plenary session of the Senate. EFE /Juanjo Martin

Escrivá – who clarified that he was making these statements in a personal capacity – defended the adoption of the so-called “Australian model”, based on the calculation of the volume of expenditure per inhabitant necessary to provide the services and in which the State is then to transfer the corresponding resources to the regions.

The opposition and the government, against

The recentralization proposed by the Minister of Social Security was rejected by the PP of Alberto Núñez Feijóo, who urged “not to do demagoguery” with fiscal policy and to respect the autonomy and powers of regional governments.

The government itself has not supported Escrivá’s thesis either, and its spokesperson, Isabel Rodríguez, has ruled out that the executive is studying the centralization of taxes despite its criticism of the announcements of the communities governed by the PP of lower or eliminate certain taxes.

In this sense, Rodríguez insisted that the government understand that any modification in the fiscal area must be framed in the regional financing model.

The minister’s spokesperson, Isabel Rodríguez García, during the press conference after the Council of Ministers. EFE / Juan Carlos Hidalgo

On the side of the PSOE, its spokesperson in Congress, Patxi López, advocated “fiscal co-responsibility” between the communities and criticized the fact that some are already competing downwards in terms of taxes, since many this way “they leave most of the citizens”.

United We Can and the government’s parliamentary partners have censured the “dumping” (unfair competition) in tax matters that some communities intend to practice and urged the executive to take measures to avoid it.

Andalusia and Madrid abolish wealth tax

The debate intensified this week after the popular Andalusian president, Juanma Moreno, announced on Monday the abolition of the wealth tax in her municipality. The measure is already in force in the Community of Madrid, also governed by the PP.

“From here, I tell Catalan businessmen that their land is here. In Catalonia, there are inheritance and gift taxes; Not here. In Catalonia, there is a wealth tax; Not here. And besides, here we are never going to become independent,” Moreno said on Monday, in statements that caused unease in the Catalan government.

The tax management discussion comes months before the arrival of the 2023 electoral “super year”, which will begin with municipal and regional elections in May and culminate with national elections.

Web edition: Óscar Tomasi

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