“It will never be on the government’s agenda”


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The division in the coalition government does not end even in August, although this time the clash has not been between members of the PSOE and Podemos, but within one of them. The Minister of Finance and Public Function, Maria Jesus Montero, has disavowed José Luis Escrivá, Minister of Social Security, on tax matters. The proposal of the Valencian president Ximo Puig, to which Escrivá joined, to
create a tax on high income in the Community of Madrid
In order to offset the capital effect, it is not at the head of the Government.

“This proposal is not on the government’s agenda, nor will it ever be,” Montero said in statements to the media collected by Ep after a meeting with the mayor of Sanlúcar de Barrameda (Cádiz). The holder of tax authorities Ditch the controversy after yesterday’s words from his partner in the Executive.

Montero has indicated that with his statements he has been quite clear. The controversy comes after Escrivá supported the idea of ​​taxing certain citizens of the region chaired by Isabel Díaz Ayuso. “You have to keep exploring it and it has a long way to go”said the head of Social Security, to add: “The concept of compensation for those people who live in less crowded areas and do not have the economies generated by living in large spaces where productivity is higher is something that has been studied and It makes a lot of sense”.

Along the same lines, he stated that, at a time when worldwide “progress is being made towards avoiding tax competition between countries in different tax figures, it does not make much sense that at the regional level in Spain we are going the opposite way.” “We have to have solid, strong, expanded tax bases that are not subject to offshoring processes. We must address this issue in a decisive way, “said Escrivá. This speech is also part of the climate of pressure from Podemos to raise taxes already in 2022, and awaiting a comprehensive tax reform by 2023.

Montero has abounded in what would be “Counterproductive that no government, regardless of political color, was going to work in that direction”. He has also commented that they seek not to confront the territories with their policies and to hit the key of «consensus, dialogue, the ability to reach an agreement among all the territories that make up Spain so that there are no comparisons, grievances, so that some people think that they have fewer opportunities than others because of the fact of living in one territory or another ». “They will never find anything in this government that confronts the territories,” he stressed.

Autonomous reform

What still remains to be addressed is the long-awaited reform of the autonomous financing system. Several regions requested to enter into this matter at the last meeting of the Council for Fiscal and Financial Policy (CPFF), although the melon was not opened as it was out of the agenda.

New talks to reform the system are expected to begin in the last part of the year. But it is not the only issue that the Minister Montero, which will have to face a tax reform for 2023.

To undertake the tax reform, which Unidos Podemos wants to undertake already in 2022, the Treasury is waiting for the report of the group of experts in this area, which has until the beginning of next year to deliver its document.

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