The digital diary Valencia Square has published an opinion piece by Miguel Ángel Molina, partner of the Tax Department of Tomarial, entitled "The Government's fiscal turn in the General State Budgets." An article in which he analyzes the tax measures reflected in the budget bill, "with overly optimistic macroeconomic forecasts", in the author's opinion.
Miguel Ángel Molina reviews the tax measures of the Budget project: «among which the exemption for dividends and sale of subsidiaries is limited to 95% (currently, 100%), increases the personal income tax for work income over 300.000 points euros per year and three percentage points for capital income above 200.000 euros per year, the Wealth Tax increases with indefinite validity, the Hydrocarbons Tax (“dieselazo”) increases, the VAT on sugary drinks increases, etc. »
The partner of the Tax Department of Tomarial explains that they are “tax measures that involve a significant tax increase for companies, businessmen and citizens. But this would not be the most striking thing if we take into account the investiture agreement between the PSOE and United We Can, although in that pact there were fiscal relief measures that have not reached the Budget project: reduction of two points in the tax rate for entities with a turnover of less than one million euros and deduction for incorporation of women to the company's management body. " In the author's opinion, what is «especially serious is the turn that our Government adopts when presenting budgets with this tax increase with which it is falling: with thousands of closed establishments, freelancers collecting the benefit for cessation of activity, increase in unemployment ... I insist in the turnaround because weeks before the presentation of the aforementioned project, the Minister of Finance, María Jesús Montero, announced that the tax reform was on hold until the economic and health situation improved. I sincerely believe that we must ask our leaders to look at neighboring countries such as Germany, where it has been proposed that the State assume 75% of the income obtained by businesses in November 2019. "
Miguel Ángel Molina ends his writing by asking “our leaders, and the rest of the political forces, to take advantage of the parliamentary procedure to make a final turn towards sanity and common sense. If they do not modify the tax increase measures contemplated in the current project, they will only aggravate the current situation of economic and social crisis. "
The full article can be read at Valencia Plaza by clicking on this link.
