Carlos Sanchez article The Confidential :
A regional financing something similar happens. Since the vice Solbes officially launched the debate back in July, all statements have been grand, but not a figure to put in their mouth. It appeared that before the end of the year, the citizens would know the Government's proposal, but lo and behold it reaches 2009 remains unknown and not a miserable figure, which is ultimately what matters to taxpayers. Many philosophy and many husks that only abounds in platitudes (global sufficiency guarantee or equity of the system), but in view of document presented yesterday by the Government to the regions is impossible to know the answer to three key questions: How much will the new system (it is absurd to talk of new model) Who will benefit more? and, above all, where it is heading a country that dwarfs every five years is the figure of the central state administration for the regions?
goes without saying that one of the best inventions that Spain has given birth in 31 years of democracy has to do with the existence of peripheral administrations that bring the action of government to citizens in different areas (local or autonomic). These good intentions were reflected in a somewhat incoherent, the military broadsword was there, in the 1978 Constitution, but the Title VIII helped the process START-autonomous. And there is no doubt that this country has taken a great leap forward in the last three decades at all levels. Thanks, among other things, territorial decentralization of public expenditure.
A model exhausted
This model, however, does not seem exhausted and overstretched in their current terms since it is generating all kinds of duplication and inefficiencies in public spending. Hence, it is necessary a new funding model that goes far beyond a simple allocation of money by the Minister of Economy of the day more or less arbitrary, and camaraderie are distributed in the regions. Uu money which, incidentally, has no central government, so to be financed through borrowing, which is a real nonsense. SMEs and families do not have sufficient resources to finance their needs, while the government saturate the international credit markets in search of liquidity. A great example of solidarity. That also means that billions of euros it costs the new system, intended to finance current expenditure, pay will not be raising taxes or reducing public spending, as would be reasonable, but the next generation will have to deal with these debts. Another example of intergenerational solidarity.
The worst, however, is that the new system goes a bit more in the dismantling of direct taxation as the backbone of State taxation. Instead of walking towards the creation of autonomous taxes, there is another bite at the income tax. Not only extends the assignment of income tax to 50%, but above all, the tax is frayed by increasing the regulatory capacity of the regions in matters as the minimum capital as personal or family policy fee deductions or tax scales modulation in terms of what each regional parliament to rule. Seriously endangering further market unity on fiscal matters.
income redistribution
words, instead of keeping an effective instrument for redistributing income and welfare throughout the country, choose its regionalization, leaving the state powerless to deal certain economic policy decisions. Especially if you consider that this is a huge tax with revenue-raising power.
seem more reasonable the existence of strictly autonomous taxes supplemented by contributions from the state to ensure a consistent quality of essential public services, which would have a double advantage. First, the regional tax would be more transparent and therefore more 'visible' to the public. As a result, local politicians would be required to stand up to their constituents on the level of taxation that applies to every territory. What happens now is that the 'barons' regional-of all political-hide behind the silhouette of madrid to hide their shame. Accusing the managers of the state of being harsh with social demands.
