December 2, 2020

Tax advisors see “exaggeration” that the tax on the large fortunes of Podemos collects 11,000 million


Madrid

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The tax advisers have exaggerated the forecast of United We can of raise 11,000 million euros with his proposal for a tax on large fortunes, a figure that according to the technicians of the Ministry of Finance could be reached if it were articulated as a surcharge in the current wealth tax.

Unidas Podemos took last Thursday to the Reconstruction Commission of the Congress of Deputiesa proposed tax on large fortunes, those of more than a million euros, with the aim of raising 11,000 million euros annually.

Large fortunes would be taxed on their assets, excluding up to 400,000 euros of habitual residence from the declared amount, progressively: 2% from 1 million euros; 2.5% from 10 million; 3% from 30 million and 3.5% from 100 million.

This tax would come to replace the current wealth tax, a personal and direct tax that taxes the net worth of the person -that is, his assets and economic rights, discounted the charges- as long as it exceeds 700,000 euros, with the exception of up to 300,000 euros of the habitual residence.

In the 2018 campaign they declared this tax 205,330 taxpayers, but the numerous regional deductions that exist for this tax limited its collection to 1,119 million euros.

“An exaggeration”

The president of the Registry of Fiscal Advisory Economists (REAF), Jesús Sanmartín, has considered «An exaggeration» the collection forecast of Unidas Podemos, especially since the proposal is not accompanied by a report.

As an example, Sanmartín has indicated that the 11,000 million raised by the purple formation would account for half of what is collected by corporation tax and ten times the income from wealth tax. According to REAF, the collection of a tax of these characteristics – which, he has underlined, would amount to a wealth tax like the one that already exists – would be “At most” about 4,000 million, “As long as the economy recovers and the values ​​do not drop much”.

Also the president of the Spanish Association of Fiscal Advisors (Aedaf), Stella Raventós, sees the collection forecasts as “exaggerated”, especially given the lack of specification of the proposal. This lack of detail has generated in his opinion “Confusion and concern” among taxpayersFor example, they do not know if the shares of the family business in which they work would be subject to this tax.

Betting on existing taxes

Thus, to increase the fiscal pressure, Raventós I would see “more sensible” to be done through taxes that already existAs stated by the Minister of Finance, María Jesús Montero, “as long as we do not reach such high rates that they are confiscatory.”

Montero pointed out this week that the Government’s objective is to achieve “fair” taxation and that those who earn more contribute more, a goal that in his opinion can be achieved with the modification of taxes that already exist without the need to create a new tax.

An extraordinary assessment

Unlike tax advisers, technicians from the Ministry of Finance (Gestha) they do believe that the collection of 11,000 million could be achieved as long as the initiative is articulated as a extraordinary tax on wealth tax, a kind of surcharge on that tribute.

Creating a new tax would require a long parliamentary process, while an extraordinary tax that did not allow exemptions could be launched for this same year, explained the general secretary of Gestha, José María Mollinedo.

Gestha has estimated that the new tax would affect 114,000 people, 0.5% of personal income taxpayers, they would have to pay an average of an additional 86,000 euros a year, a figure that would rise to an average of 14 million for the 89 taxpayers who declare assets of more than 100 million.

The association has estimated that the application of the proposal of Unidos Podemos on the declarants of the wealth tax would allow raising 9.8 billion euros, but they admit that the deviation with the anticipation of the purple formation may be due to technical details that are still unknown.

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