It is not an easy task to decide the basic parameters for structuring the contribution of citizens to the exchequer. Throughout history, all kinds of beards have been treated as taxable items for tax purposes, including a curious tax on men’s beards, created by Henry VIII of England in the 16th century and his was proved by daughter Elizabeth, although it was qualified. Applies only to those who have at least two weeks of shave. O well, Nucentista A tax in France, according to which it was paid on the basis of the number of windows in the houses.
Apart from some bizarre tax figures, the basic objective of any tax system throughout history has been to raise the necessary funds to meet the needs of the treasury, which is marked by the common good of the communities of citizens. But, Above all, the tax system should be fairSince in any case it cannot be proprietary or asymmetric, based on different classes of citizens on whom the tax is directed to be levied.
As is well known, in Spain, the Autonomous Communities (CCAA) have devolved both taxation for property tax (ISP) and taxation for inheritance and donation tax (ISD), which are subsidized at 99%. In some autonomous communities, that apparently implies an incentive for those with large fortunes to feel attracted to establish their residence in a specific ac (such as Madrid or Andalusia) in which they were located up to that time.
Town Hall, on the other hand, has taxes of a local nature, such as property tax (IBI) that, In some cities, such as Madrid, it has tripled or quadrupled in the last twenty years.which, in fact, may cost a retiree between one and two months of his pension to be able to comply with the Treasury, deducting that money from the use of heating or the quality of his food.
Therefore, we can affirm that the tax system that we have suffers from some aspects related to the taxation of property, which has to be corrected for greater social justice between different categories of taxpayers according to their wealth and income. should go. The goal should be to properly balance income and wealth taxationWhich have traditionally been considered as the two basic sources of collection by the governments. The basic premise is that having income is not the same as having wealth.But the tax levy must almost always be paid through monetary payments that necessarily come from income, and if there is no income, taxpayers sometimes have no choice but to sell part of their assets. , as they cannot maintain it and at the same time comply with their tax obligations.
If we focus basically on the taxes collected by CCAAs and Local Corporations (CCLL), we would have the following development for IBI, ISP and ISD as we can see in the following table:
we see that IBI increase is absolutely unjustified, Since they have represented an increase of over 85% over this period. Problems arose when the financial crisis occurred, as income from real estate activity accounted for most municipal financing, and when the real estate bubble burst, municipalities, already accustomed to spending a lot of money, did not give it up, and they decided to increase one of the few taxes they collected, as can be seen in the 2008–2014 period, with more modest increases later Could
With regard to the ISP, it was practically abolished by Zapatero in 2009, but, in 2012, Rajoy reinstated it (expanding other tax bases following cues from the fiscal gluttony of his finance minister, Cristóbal Montoro). except to do). with very little revenue. It is a census tax, originally collected by the autonomous communities, to know the legacy of the taxpayers, since the collection is minimal (barely 2% of the global income of the Public Administration (AAPP).
As far as the ISD is concerned, the management of which has also been handed over to the CCAA, it has generally been the object of criticism by some CCAAs who charge it for all of their citizens in relation to others who have done so for direct descendants. Subsidized up to 99%, as we have indicated earlier. This, logically, assumes a fiscal asymmetry with respect to citizens’ filings that has been the source of previous criticisms. However, it is necessary to point out that the collection is also quite low (about 7% of the income of CCAAs).
On the other hand, and to correct the fiscal disparities that we have mentioned, we need to establish two reforms in direct taxation based on personal income tax (IRPF) savings with respect to two financial figures:
- bond and debenture portfolio Tenants owned and whose coupons and capital gains are taxed at half of the income earned as they are paying a rate of 23% from €50,000 to €200,000 and 26% from €200,000 of remuneration, which is a rate The tax represents approximately half of working income (45% between €60,000 and €300,000 and 47% over €300,000.
- Variable Capital Investment Companies (SICAVs)whose model has so far been used for the large fortunes to store their movable assets with hardly any tax to the treasury, as the income derived follows the accumulation principle and even from their investments Coupons and dividends received are also not subject to withholding.
Our tax reform proposal will be based on integration of the following tax bases:
- Wealth tax (autonomous).
- Inheritance and donation tax (autonomous).
- Property tax (local).
- Temporary Tax of Solidarity of Great Fortune (ITSGF) (national with specifics regarding the specific tax system of each CCAA).
- Supplement the savings base for fixed-income portfolios subject to personal income tax (national and regional with an assumed percentage of 50%).
- New specific tax for SICAV
make this big tax block into a new tax, which we’ll call the estate tax general property tax (IGP), and this will affect both the principal of the said asset as well as its yield. This new tax should anticipate the abolition of previous taxes. Exempt from the IGP all Spaniards whose assets are less than one million eurosEqual to the value of a house, car, dowry, savings, pension fund and a potential second home.
In case of bond and debenture portfolio, he will have to pay an additional 22% of the income generated in the year, from global equity of one million Euro and through IGP. For SICAV, and above one million Euros of the taxpayer’s global assets, a percentage indexed to the profitability achieved by it should be established, which should be paid, modifying the liquid quota of the IGP based on estimated parameters. The concept is based on the performance of SICAV in the last three years.
With regard to the handling of the tax it would be interesting that it is done with a scheme similar to VAT, ie it will be collected by the state and then a percentage will be transferred to the CCAA and CCLL. Which will prevent shortfall in current income of these corporations. Thus We will eliminate the bonuses given by some communities in property and inheritance and, although they correspond to transfers made at that time from the central administration, they represent an undesirable disparity in the purpose that any tax system should have, other than the treatment of all Spanish citizens and nobody is here. In the matter of property taxation.
obviously, The most contentious point will be in the tax level of the IGP for citizens who have assets of more than one million. euro (in the ITSGF it is from three million euros), as well as the necessary sensitivity of the Ministry of Finance when valuing large assets that do not generate income (palaces, large estates, paintings, valuable jewelry, etc.), because what cannot be sought Income may be derived from items that do not produce it, and basically, what they actually produce is expenditure. Citizens, no matter how rich they are, cannot be forced to sell part of their assets to pay taxes, as we indicated earlier, retirees have to pay IBI for this fact. For they cannot be forced to live badly that they own the house.
We do not intend in this article to develop a tax model with the necessary details, but rather to emphasize the problems that our current model has and the lines of action that should be taken in the years to come, with the aim of changing taxation. on property, establishing a level of IGP tax rates that would allow balancing the budgetary income and expenditure of the public administration, balancing income and property taxation and avoiding obviously excessive rates, as happened in France, when The tax on great fortunes was established with a maximum marginal rate of 75%.
The truth is that our political forefathers have a lot to do with fiscal policy. Most Spaniards demand that they sit down, discuss and agree once and for all on a sustainable model with which long-suffering citizens can plan their lives in terms of housing, investments, pension funds, etc. Taxes cannot change continuously, changing the forecasts of families and companies, When there are new elections, everyone who has some property, or even just a pension fund, starts to tremble, because, whether it’s a left-wing government or a right-wing one, what they’re going to study is that How to increase collections, either by increasing taxes, or by eliminating deductions.
If we manage our lives by paying off a mortgage for thirty years or paying periodic premiums to set up a pension fund throughout our working lives, we cannot be at the will of “people with ideas” who administer Let’s enter and come with change. Rules of the game without any reason in the middle of the game. Rules can be changed, but not for those who have already made their long term decisions based on the old rules.
