Isabel Díaz Ayuso warns: “I will be the worst nightmare of those who want to steal from Madrid” to “pay for the party, the corruption of the independence movement, which is corruption.” The president of the Community of Madrid said this Wednesday visibly upset in an interview on Antena 3 when asked about the ERC amendment in the general state budgets that asks to end “the tax haven of Madrid”.
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“That that Madrid is a tax haven is a joke” and above all “a lack of respect for all Madrid workers, all the people who get up early, who pay taxes, which are many in a region that fights, in which you have a lot of freedom and a lot of offer, “said the Madrid president, visibly angry.
The spokesman for Esquerra Republicana de Catalunya in the Congress of Deputies, Gabriel Rufián, announced on Tuesday the agreement with the central government to support the budgets. The support was conditional on a series of measures, including a moratorium on the payment of the self-employed to Social Security until March 2021 and “end de facto tax dumping and the tax haven set up by the right in the Community from Madrid”.
The Madrid president has announced that she will travel to Catalonia in the next few days to defend her position: “I am not going to shut up,” she said. And he added: I will be the “worst nightmare” of those who want to “steal” from Madrid. The leader of the PP has defended that as she did in the “hardest moments of the pandemic”, for fiscal freedom in Madrid as well as for educational freedom she will do “whatever it takes, where it is needed”, and it will be “the worst who’s nightmare “if they start to touch the pockets of Madrid taxpayers to” pay for the party, the corruption of the independence movement, which is corruption. ”
“What many Catalans, many Andalusians or many Extremadurans do when they want to be free and create companies is to come to Madrid. Instead of keeping them in their autonomous communities doing the same, they attack Madrid,” he launched. In Spain, Ayuso said, there are two types of person “those who pull the car and those who live off others.”
Taxes in Madrid
Madrid is today the region that has the lowest autonomous income tax bracket in Spain (together with the Canary Islands, which applies the insular exception of 9%). The last tax cut took place in 2018, the pre-election year, when the Government with Cristina Cifuentes at the helm approved a reduction from 9.5% to the current 9%. The section for the richest in the Community of Madrid is the lowest with 5 percentage points of difference with respect to other autonomous communities such as Cantabria, Rioja, Extremadura, Andalusia, Valencia, Asturias and Catalonia. The estimate is that it is a lower collection of 860 million when compared to those autonomies, according to the 2018 report by the College of Economists.
But to the generalized reduction of taxes are added other fiscal benefits that Madrid applies to taxes whose management cedes the State to the autonomous communities. This transfer was born as a way to involve the autonomies so that they are responsible for part of their income since they manage the bulk of social spending (health and education, mainly).
They are inheritance, donation or patrimony taxes. The Community of Madrid has been a pioneer when it comes to subsidizing this type of tax: it does so at 99% in the case of Successions and Donations between parents and children and between spouses. The wealth tax is annulled because it is rewarded 100%: the regional government stopped entering in the last year in which there are records (2017) 955 million euros. Catalonia, the second richest Community, however, collected 498.5 million that year for the same tax.
In the case of Inheritance and Donations Tax, which is reduced to 99%, in 2018, in Madrid only 411 million euros were collected. Stop Inheritance Tax, a platform that fights for the suppression of this tax, has developed the example of a 30-year-old person, single, who inherits 800,000 euros of assets from his parents, of which 200,000 euros correspond to his home.