Taxation has become one of the central points of the economic policy of the Community of Madrid in recent decades and, especially, in the last term. Yesterday the regional president, Isabel Díaz Ayuso, announced that if she repeats in Puerta del Sol after the regional elections on May 28, she will apply a new reduction to the Personal Income Tax (IRPF) of half a point, which will be added to the The same stretch that it already approved in 2021, to continue delving into the reduction of the tax burden that it has been practicing since 2019.
In fact, according to data from the Ministry of Economy and Finance, since Ayuso ruled the Presidency of the region, he has accumulated 35.8% of the total tax cuts that have been carried out in Madrid since 2004, even having always succeeded governments of the PP throughout this period of time. The amount of savings from that moment, started in the Esperanza Aguirre stage, amounts to 67,829 million euros. Of them, 24,305 million have occurred in the last legislature.
Because the tax reductions have been increasing in these four years essentially supported by the IPRF and the Inheritance and Gift Tax, subsidized to 99% in the closest descendants. If in 2019, the savings in the IPRF for Madrid residents was 869 million, in 2022 it was 1,414. This represents an increase of 62.7%. In Inheritance, this variation has grown by 29.2%, from 3,084 million to 3,986 last year during the legislature that faces its final phase towards the polls.
«Tomorrow April 11 [in reference to today] the 2022 Income campaign begins. And, thanks to our autonomy, the people of Madrid will be able to note in their declaration the half-point drop in all the sections of the IRPF that we approved in 2021 », Isabel Díaz Ayuso stated yesterday in her speech at the informative breakfast of the Nueva Economía Forum. The popular leader set “the extra savings” for these beneficiaries at 334 million euros before announcing the future drop of another additional half point. Sources from the Ministry of Economy and Finance, in the hands of Javier Fernández-Lasquetty, put the new bonus at 355 million a year.
This model of tax deductions began during the Presidency in the Community of Madrid of Esperanza Aguirre in 2004. In the eight years that the popular leader held office, until her resignation at the end of 2012, tax savings amounted to 18,368 million, boosted above all from 2006 with the Inheritance and Donations bonus. In the two full years, until June 2015, in which her successor, Ignacio González, remained in charge of the regional government, the decreases were 6,965 million.
With the arrival in 2015 of Cristina Cifuentes at Puerta del Sol, the tax deduction trend continued to be the regional government’s economic recipe. Until her resignation in 2018 in the midst of the scandal of the master case and the theft of the creams, counting that entire year, the balance sheet of Ayuso’s precursor accumulated a tax cut of 19,191 million. And, with the arrival of the current president, it has risen to 24,305, completing the total of 67,829 million popular leaders of the Community in 18 years.
In that period of time, in Madrid, five reductions have been developed that have affected personal income tax (2007, 2014, 2015, 2018 and 2021) to which a sixth will be added if Ayuso were to repeat as president. In addition, some additional bonuses have also been created or increased that are related to birth, adoption, housing rental, dependent care or large family status. “That is the key for the economy of Madrid to have worked all these years”, they point out from Puerta del Sol, where they point out that in the current mandate 20 tax rebates have been applied through six laws that have affected the autonomous sections personal income tax, its deflation or an increase in the Inheritance bonus, which currently stands at 99% between spouses and parents and children, and 25% between brothers and uncles and nephews.
Given that the region currently has 3.5 million taxpayers, the tax savings for each of them in the last four years would be 6,944 euros. That is why the regional president, who has made a political banner of low taxation in Madrid, has filed appeals before the Constitutional Court before new taxes raised by Moncloa such as that of great fortunes.
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