THE Treasure of Catalonia would improve your net income up to 9,037 million euros to the detriment of the rest of the regions in the event that Pedro Sanchez cede and approve the Catalan quota agreed between the PSOE and the ERC to allow the investiture of Salvador Illa as president of the Generalitat. This is reflected in a report of Funcas published this Wednesday, even if it warns that the exact conditions of the Catalan quota They are not reflected in the PSOE-ERC agreement, so their final impact will depend on the final text of the agreement.
But, with the data presented, the economic experts cited by Funcas point out that the Treasury of Catalonia would increase its net income by 5.280 million if 100% of taxes were transferred and if the region contributed to the expenses of the central administration. in proportion to its gross domestic product (GDP). If finally the contribution of Catalonia to the expenses of the Central Administration was accepted proportionally to the populationthe Catalan coffers would improve by the aforementioned 9,037 million euros.
If it was finally agreed to Catalan quota a contribution from the Generalitat to solidarity between regions – the text of the agreement conditions it so that the rest of the communities do not lower taxes – the figures would depend on the amount of this solidarity share. If the contribution represents 50% of what Catalonia currently contributes to interterritorial leveling, the final improvement for the Catalan Treasury would be 2.641 million if calculated on the basis of GDP and 4.519 million if calculated on the basis of the population.
The figures show that the Catalan quota would be better for Catalonia if it were calculated proportionally to population and not to GDP. It turns out that in the Law The separatists imposed that the central administration invest in Catalonia the weight of the region in the national GDP, that is to say on the basis of GDP.
The experts cited in the Funcas report also calculate that Catalonia’s per capita financing would also improve to 120 points, from an average of 100, if its contributions were calculated based on GDP and to 135 points if they were based on the population.
Another problem of Catalan quota This would be that if it was approved for Catalonia, it would encourage other regions to also request it. Funcas warns that if the rest of the autonomous communities requested it and were calculated proportionally to GDP, funding per capita for Madrid would amount to 151 points – Catalonia 120 – and Extremadura, 67. Funcas warns of this risk and its impact on legality. between regions.
Because the main impact of a Catalan quota would be that resources would be withdrawn from the central administration to distribute them with the rest of the regions and face economic crises that may arise in the future. “The loss of central government fiscal capacity over a growing part of the territory would limit its ability to respond to negative asymmetric shocks such as those we have suffered over the past 15 years,” the report said.
Additionally, approve the Catalan quota and removing Catalonia from the common system would complicate the fight against fraud at national level. Regarding the impact of the breakdown of corporate tax unity, Funcas emphasizes that “the transfer of corporate tax (IS) with regulatory capacity to the autonomous communities would open the door to harmful tax competition , would increase compliance costs for taxpayers and increase the risk of tax fraud.
