Tuesday, April 23, 2024

Government Will Study Eliminating Reduction By Joint Taxation Of Personal Income Tax

The coalition government will study to gradually eliminate the tax reduction for joint taxation of marriages when they declare personal income tax, according to sources from Moncloa .

In the Recovery, Transformation and Resilience Plan that the Executive has sent to the European Union, they state their intention to analyze the possible “gradual” suppression of this benefit, considering that it “generates a disincentive to the labor participation of the second income earner”, which they are usually women .

According to ‘El País’, the alliance of PSOE and United We can propose to establish a transitory regime to move towards the elimination of the reduction in the taxable income of personal income tax due to joint taxation that amounts, in the case of family units made up of both spouses, to 3,400 euros, and in single parents, to 2,150 euros .

However, sources from the Executive explained that these are not their intentions since, for the moment, they only propose to study measures that allow “preventing this tax reduction from accentuating the existing gender gap in the labor market.”

The government plan, as indicated by Moncloa, “evaluate and analyze the effectiveness and efficiency of the current tax incentives.” In this regard, they refer to a study carried out by the Independent Authority for Fiscal Responsibility (AIReF) in which the drawbacks of the reduction due to joint taxation were mentioned and it was committed to accelerating their gradual disappearance through the establishment of a transitional regime.

The Tax Agency expects to receive almost 3.5 million joint returns in the 2020 income campaign , 7.1% less, a downward trend that has been maintained for years since this reduction is applied mainly in the case of that one of the spouses does not work.

Therefore, in the Executive they maintain that a group of experts has been created that will issue a report in February 2022 and it will be then when they consider “what fiscal measures are most appropriate” to “boost growth and job creation.” In addition, they emphasize that “in no case is this possible tax reform going to mean an increase in the tax burden on families.”

Criticisms of the PP and Cs
Several leaders of the PP have charged this Sunday against the Government’s proposal. ” [Pedro] Sánchez, suffocates the middle classes and families again. Socialists and communists will continue to spend and the rest will pay.

This is how we Spaniards support the payroll of their macro government and court of advisers with our salary ,” the PP spokesperson has published. in Congress, Cuca Gamarra , on her Twitter account.

“Spaniards deserve a government with a serious economic plan that tells the truth,” said the vice secretary of Communication of the PP, Pablo Montesinos , in his account, to add that next May 4, date of the elections in the Community of Madrid, “Sánchez will have one foot outside Moncloa”.

The party’s Deputy Secretary for Sectorial, Elvira Rodríguez , has criticized that the Government announces “without any qualms” a tax increase “for the middle class.” ” Now it is the turn of the households with a joint declaration, which are the ones with the least income. This is what awaits us with the Social Communists, ” he added.

The president of Cs, Inés Arrimadas , has also criticized the Government for “celebrating Mother’s Day by taxing four million families who make the joint declaration and who thanks to Sánchez are going to pay more taxes.” “We are not going to allow it, it is already good to tax those who work and have a payroll, to always scratch their pockets,” he asserted.

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