He Debats about regional financing I surfaced to the proposal The only model for CataloniaThe field but the introduction of this uniqueness, very similar to the implementation of the Basque country and Navarra, will worsen the finances of poor communities and will risk the fight against fraud (this may even stimulate). This is explained in the book Catalan quota billwritten by Alimon Francisco de la Torre And Hesus Fernandez-VilverdaThe field in this work both economists formulate a battery of measures to improve the current financing system, including correction in regional regime.
A unique proposal for financing is part of the premise that Catalonia is awkward. This is true?
Catalonia is financed above the average in accordance with the gross data what is happening is that this financing is justified, because, on the one hand, taxes rose to other regions that reduced them. Secondly, in Catalonia there are competencies that do not have other autonomous communities, such as prisons or Mossos de EcvadraThe field is also logical that it is better financed. Within the framework of the general system, if someone looks at the parameters of the adjusted population, financial efforts and homogeneous competencies, Catalonia will be on average. If someone looks at the unprocessed data, they will be higher than average, and there is no large autonomous community that has the best financing than catalonia in per capita terms. So what is happening? Problems with Catalonia debts are due to the fact that he spent more in relation to his income. Therefore, this is not a problem of infinance, but excess expenses.
He Government It protects that Catalan Singleularity can be exported to other communities.
It is unlikely that a unique model, in addition to the regime on the preliminary course of Vaskonavarro, is unlikely to be exported. And then there is a second problem: affordable money that is not limited. If one of the goals of the agreement between the PSC and ERC is a significant improvement in Generalitat financing, this means that the money should go somewhere. The idea that all communities will improve their financing is possible only with increasing taxes, current or future future or reduction, where you can, or in other autonomous communities that are not signed for this unique system or social security. The general state administration does not have sufficient expenses to finance a unique model, so what will be asked in this case will be a pension reduction. There are no more options.
They insist that, despite the fact that the Catalan quota, the ERC and PSC model is not inspired by the functioning of Basque Country and Navarra.
The expanded scheme is based on the regional system in which the autonomous community charges almost all taxes, and then pays a contribution to its participation in general expenses. There is a difference: in Catalonia there will be a quota of obvious solidarity. If this is done well, this system reduces the solidarity of the inhabitants of the wealthy autonomous community. And, if it becomes bad, you ultimately, as the country of Basqueskoy and Navarra, which are rich communities that do not cooperate at all in interitritic solidarity and receive income from other residents of the territory, which, with the exception of the case of Madrid, are more poor.
How can you combine the principle of solidarity with the principle of orderly? In the abstract, this seems contradictory.
The solidarity lies in the fact that the richest make efforts to have the poorest to have great resources. On the other hand, ordinality a priori This is that a person who is richer than another does not become poorer after the intervention of the state. ANDThis principle, which we could call it weak orderliness, seems moderately reasonable until it reality. For example: if I win more money than my neighbor, it seems reasonable that after taxes I continue to earn more than my neighbor. But if my neighbor has a single mother, she has three children, as well as a lousy state of health, and I have no children, and I am in perfect condition, this is not so reasonable. However, this principle of weak orderly can be discussed. But the agreement between PSC and ERC says that what Catalonia receives should be based on what it introduces. This leads to the actor in accordance with the gross internal product of taxes. And this contradicts solidarity. A bank deposit tax is distributed in accordance with the GDP of Autonomous Communities. Which does not seem reasonable is that Madrid receives much more money than Andalusia, although he has less needs for costs and less population than Andalusia. If this goes into the overall financing system, the result is simply an aberrant. The problem is that you cannot establish as a criterion that a person who makes more should get more. No one in their right mind can pretend that Amansio Ortega has absolute priority over the Spaniards who pay less taxes than he. He does not pretend. Because this is a criterion of strong orderly that each community receives depending on their contribution.
It is sometimes argued that in countries such as Germany or Canada, rich regions do not lose so many positions when comparing rating Collection and rating state transfers after the redistribution of resources.
In any federal country, if someone makes an account among federal taxes raised in the federal state, and which, obviously, has been received, the richest always lose. There are much more taxes in Bavaria than the balance received compared to Linder From East Germany. This deficit is also cruel in California compared to the rest of the United States. What rises is that the autonomous community, depending on the taxes collected there, should receive more transfers for working with their expenses. This is irrational. WITH quota Catalonia wins, Madrid will win infinity, and everyone else will suffer.
Let’s look at the numbers that will be applied to the new single model. The difference between what Aeat collects in Catalonia and the achievements of the state is an order of about 30,000 million, but the book has concepts as the interests of the debt, social security … and the difference is about 8,000 million, which would have to be left as a share of solidarity and additional resources. And this is not an overly relevant amount, right?
And this is a well -made system. But the image that you have is that you want to finance Basque Country and Navarra. In fact, it was Arthur Masa about Mariano Rahaya in 2014. The problem is that when someone puts the numbers, he will almost double due to financing per capita in Catalonia. Why is this difference? Because the country of Basque and Navarra makes a negative contribution to practice. The point is not that they do not contribute, they receive financial resources from others.
The agreement between ERC and PSC will fragment the tax agency, since the autonomous agency will increase all taxes. What will be the effects?
The collection is much easier if it is ready central, because raw materials for raising taxes are information. Whenever you fragment the database and the fragmented administration, the knowledge of its employees. Therefore, this has costs. The only federal country where this is happening is Germany. And in Germany, a much higher cost of gathering than in Spain, because it is fragmented between federal agencies LinderIn addition, you manage to raise less than the field. Each year, the European commission evaluates VAT gap, which measures fraud in collecting from the absence of efficiency. This gap is higher in Germany and also higher in the country of Baskskaya and Navarra, because it is also fragmented.
Will there be more adverse consequences when the tax agency cut?
Many services that are perceived in Spain will cease to be received. For example, it is very easy to generate normal income, because all data is a tax agency, and the system is excellent. You can have such a system as an American in which you need to not only submit a declaration of income at the federal level, but also in each staff where you received income. As a result, you have much worst service, for your repair you need months, return. The fragment all this will imply more statements that taxpayers must submit, American extreme case will not achieve that there are taxpayers, presenting 40 income reports, but the companies will have to submit more statements, and we will have worst services. Someone will explain to me if all this is worth it.
Can this role take the Tax Agency of Catalonia?
A tax agency in Catalonia is impossible to take care of this.
But in 2026, the Catalonia rental campaign wants to be controlled.
IRPF is half the collection of the system. That is, this is the main tax. This can only be done with a hostile OPA to special delegation of a tax agency in Catalonia. I know that inspectors and other employees of the house, in their vast majority, do not want them to pass them. This is an additional problem that is of great importance, so that on January 1, IRPF can be controlled directly by the Tax Agency of Catalonia. In the end, the financial system costs to such an extent that the tax administration is worth it. And a fragmented tax administration, as well as the transferred personnel, which is always much less than the usual tax administration.
At the end of the book, they create a battery of ideas to improve the current financing model. What is the most important?
The system must be radically simplified. You cannot have five funds that go in different directions. Secondly, you should adapt the system parameters to the current situation, because there are continuous communities to not update the data. Thirdly, make the settings faster. If the autonomous community decides to increase or reduce taxes, the effect of the consequences should be direct. And then, even if it is not very popular, you should calculate more clearly and approach the results of the regional regime for the general regime. The Basque Country had a pension deficit of 4,500 million euros in 2022. It cannot be that this amount is not included in quota And let’s be different that they pay. There are problems in the current financing system, but it is to dynamite it using quota For Catalonia, this is a disaster for everyone, including the Catalans.
