Rafael Granell, director of the research group EvalPub, is interviewed by the media "Aquí en Valencia" to discuss the new tax reform and the tax situation in the Valencian Community.
In the interview, Rafael discussed various issues related to the current Valencian tax system. He explained what the new tax reform will consist of, which will affect taxes such as personal income tax and wealth tax, as well as the tax collection and redistributive effects it will have. In addition, the extent to which tax reforms are effective in the current context of high inflation was discussed.
The current situation of the Valencian tax system with respect to that of the other Autonomous Communities was also analysed. It was discussed how in some autonomous regions, such as the Community of Madrid and Andalusia, tax cuts have been advocated in recent years. These policies result in a lower collection of public revenue that can be allocated to public services. On the other hand, in the case of taxes such as Wealth Tax, the regulations of certain Autonomous Regions aimed at subsidising this tax produce “fiscal dumping” in Spain.
In conclusion, Rafael explained that the latest reforms in the Valencian Community have been aimed at achieving greater progressivity, so that those taxpayers who earn more pay a higher percentage in taxes.