Objectives of business in fiscal matters
The main objective of business is to end the fiscal pressure in Catalonia. This Tuesday, Foment del Treball presented the key points of the employers’ next Green Paper, which seeks a ‘competitive taxation’ for families, companies and foreign investors. This objective involves the reduction of inheritance tax brackets and the definitive abolition of wealth tax, in addition to the reduction of marginal personal income tax rates.
Reduction of inheritance tax tranches and abolition of wealth tax
Foment del Treball calls into question the necessity of the inheritance tax and, if it remains, it calls for the reduction of the sections to bring them in line with the average levels of OECD countries. With respect to the wealth tax, the employers’ association considers it essential to eliminate it, as it considers it archaic, with negative effects on savings and economic growth.
The fiscal balance and competitiveness of Catalonia
The president of Foment, Josep Sánchez Llibre, has highlighted the fiscal imbalance in Catalonia, with eleven taxes owned by the Generalitat, some of which have been declared unconstitutional. This contributes to the image of a ‘fiscal hell’ that affects the competitiveness of the region.
Proposals for fiscal modernization
Foment del Treball raises the need to reduce the marginal rates of personal income tax to match those of the most dynamic autonomous communities. In addition, it calls for a review of the Generalitat’s own taxes to assess their efficiency and impact on fiscal competitiveness.
Criticism of the taxes of the Generalitat
The union criticizes the excessive presence of taxes from the Generalitat, which it considers counterproductive for Catalonia’s fiscal competitiveness. In addition, it calls for the abolition of taxes such as those on carbon dioxide emissions and those on sugary drinks, to consider them ineffective in relation to its objectives.
Fair funding for Catalonia
The demand for fair funding for Catalonia is another of Foment del Treball’s claims, which highlights the need to interpret fiscal balances to achieve an equitable funding model for the region. In addition, the lack of investment in infrastructure, which is essential for the economic development of Catalonia, is denounced.
