Ábalos insists on tax incentives and defends that they are more effective than limiting rents




The Minister of Transport, Mobility and Urban Agenda, José Luis Ábalos, defended this Monday that the tax incentives proposed in the future housing law To stop the rise in rents is a “much more effective” measure than the United We Can demand to limit them. This is how Ábalos spoke at the press conference he offered at the headquarters of the PSOE after the meeting of the Federal Executive Commission headed by the leader of the Socialists and President of the Government, Pedro Sánchez, where he was sure that there will be an “agreement” in the Government coalition on the new Housing Law despite “all the controversies” between the PSOE and United We Can.

In this line, after referring to the words of the Minister of Labor and Social Economy, Yolanda Díaz, in which she also took the agreement for granted, she claimed that this future law is “much more” than the regularization of rents and trusted in that “will be born of the agreement”, at the same time that it guaranteed that the Socialists will fulfill the agreement.

The future law will make effective the constitutional right to decent housing and will stop abusive increases in rents, according to the minister, who added that it will also favor “« the supply in affordable conditions to people with lower income, to young people. and the most vulnerable groups ”.

As for the criticism of United We Can to tax incentives for benefiting large homeowners, he recalled the purpose is to make such incentives “more progressive and fairer.” In addition, he recalled that it applies to personal income tax, a tax that companies do not benefit from and that in Spain 85% of rental homes belong to small owners.

In any case, he assured that in the future law “there are many measures” to avoid the abusive increase in rents and to favor an increase in supply because “if we do not increase the supply, we are not going to lower prices,” he said.

Finally, he stressed that the set of structural measures proposed in the law offers legal certainty in the face of “any recourse that may be raised” and reiterated that “it is very ambitious” and therefore concluded that “we cannot reduce it” only to that. price limitation.

“There will be an agreement”

Hours before, Yolanda Díaz expressed her conviction that there will be an agreement in the coalition government to regulate the price of rents: “It is not about giving in, there will be a sure agreement,” he said. Asked at her entry to the Labor, Inclusion, Social Security and Migration Commission of the Lower House, the minister said she was “sure that there will be an agreement” in this regard.

Thus, he pointed out that, after unemployment, “surely the second major problem is housing”, which is also a “fundamental right” recognized in the Constitution and “in international standards”, and that “the Government wants to address one of the main problems of the country.

Asked who will give in in the dispute between the PSOE and United We Can on how to deal with the regulation of rental prices, the minister replied that “it is not about giving in, there will be a safe agreement.

We can criticize the proposal

The PSOE’s proposal to reduce the rental price in stressed areas is to increase the level of tax deductions in personal income tax for owners, up to 90%, to formalize a new contract with a lower income. Both for Montero and for the Vice President of Economic Affairs, Nadia Calviño, this proposal would comply with the Government agreement between the PSOE and United We Can, despite not containing the intervention of prices.

Faced with this, Unidas Podemos considers that the incentive system is not enough and would not comply with the coalition pact or what was agreed to approve the Housing Law. In addition, he points out that the incentive system will not only not be enough, but it also goes along the lines of benefiting large homeowners.

Thus, they consider that it is “antisocial by promoting that whoever has the most, and who has contributed the most to inflate the bubble, benefits to a greater extent from these incentives sustained with everyone’s money.”

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