Mon. Nov 29th, 2021




The Minister of Finance, María Jesús Montero, already has on the table the contribution of the Government of the Community of Madrid to the Committee of Experts that will prepare the White Paper on tax reform and that will guide the central Executive in the development of its own tax reform . In the community, however, they do not have high hopes that their proposals will be taken into account. And it is that the document sent strongly charges against the harmonization pursued by Minister Montero and makes a fierce defense of the fiscal autonomy that the communities have because, they say, it has been key in the prosperity of Madrid and, ultimately, of all of Spain.

About 30 experts from different areas of the economic world participated in the preparation of the report, although they all coincide in pointing out the relationship between low taxes and greater wealth and the creation of companies, the attraction of investments or the growth of GDP. The document highlights that Madrid has opted for this model since 2003, which has allowed citizens to enjoy tax savings of 50,000 million euros, about 1,600 euros per year per taxpayer, which have favored the economic development of the region .

«Lowering taxes makes the economy more dynamic and revenue increases. These are positive results that reach all the autonomous communities since Madrid is the most supportive region, being the one that contributes the most to the so-called common fund with which the public services of the other regions are financed, ”says the regional government. According to their calculations, Madrid contributes 68% of the common fund with which the public services of the other regions are financed, followed by Catalonia, with 25%. “The contribution of Madrid to the national group has remained above 70% even in the worst years of the crisis (2011-2015), so that low taxes in Madrid have always benefited all of Spain”, insist from the Government from Madrid.

These data should dismantle, in his opinion, Montero’s crusade, as well as his plans for fiscal harmonization. Plans that, in addition, would imply a restriction of the capacity of the autonomous communities to act in tax matters: “It would be the first time that a government violates said regional competence since the approval of the Lofca in 1980”, they warn.

The effects of the harmonization in personal income tax would also affect other taxes that are currently assigned, such as Heritage or Successions and Donations, “which have hardly any place in the countries of the European Union due to their harmful effects on the economy, savings and investment ”. It is also denied that the rebates that the different governments of the Community of Madrid have been making on both taxes have led to an exodus of taxpayers from other regions or have reduced collection.

In fact, they defend, Madrid is the second region that collects the most from the inheritance and donation tax and these bonuses have also made it possible to fight against tax fraud, since they generated an increase of 1,165% in the number of declared donations since the tax discount.

Among the firms that have produced this report are personalities from the academic, financial and professional world. Professors from universities from much of the national territory have joined, such as Salomón Aguado Manzanares (UNED), Luis Manuel Alonso González (University of Barcelona), Santiago Álvarez García (University of Oviedo), Mikel Buesa (Complutense University of Madrid), César García Novoa (University of Santiago de Compostela), Juan José Rubio Guerrero (University of Castilla La Mancha), Francisco Cabrillo (Complutense University of Madrid), Jorge Sainz (Rey Juan Carlos University) and José Félix Sanz Sanz (Complutense University of Madrid ).

But also from other financial institutions such as Lorenzo Bernaldo de Quirós (Freemarket Corporative Intelligence), Daniel Lacalle (Instituto de Empresa and Institute of Stock Market Studies) or Javier Santacruz (Institute of Stock Market Studies). From the legal field, the State attorneys José Manuel Otero Novas and Macamen Tejera Gimeno or the legal and tax advisor Ignacio Ruiz-Jarabo have participated.

Entities such as the Institute of Economic Studies (IEE), the Madrid Family Business Association (ADEFAM), the Madrid Family Business Association (AMEF), the Association of Self-Employed Workers (ATA), the Madrid Business Confederation-CEOE (CEIM), Círculo de Empresarios and the Civic Foundation and Institute for Economic Studies (IEE).

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