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22 de julio de 2017

The new funding will be worse for Catalunya: you lose 3 points will not count the VAT and tourism.


I said other times, if the funding system for Catalonia change will be worse. Said and done ...
they take away both 3 - point VAT and attention, not be taken into account that tax it collects in Catalonia only in tourism ...
Therefore, only VAT, spoliation will be just over 10,000 million euros ...

Half a year of meetings and, in the end, no substantial change. The proposal that the committee of experts will present next week on the reform of regional funding does not foresee major changes to the current framework, and improve little (or nothing) the conditions of those communities had complained more. So explain several peoplefamiliar with the meetings that have occurred. If the recommendations contained in the report are put into practice unchanged, the debt that the autonomies have contracted with the State will not condone, not take into account the cost of living in each community to distribute the money and above all they also distributed strictly according to what each brings autonomy. The status quo is thus maintained. 

Ordinal, but not practice.
What finally picks up the report? One of the historical claims of Catalunya is that the funding system is governed by the principle of ordinal, ie that communities receive in the same order they bring and do not go as far queCatalunya is the third largest contributor, but the tenth largest recipient. The report makes an attempt to include ordinal, but just matizándolo. According to the same sources explained, the proposed model involves leveling the resources of all communities and give more money to those with more tax capacity.So, would the richest communities that receive more. But the proposal includes a standstill clause which provides for compensating communities that lose resources input regarding the current situation. Thus, there would be substantial changes.





Another way to neutralize the ordinal is the proposal that the committee of experts provides for VAT. It would cease to distribute according to the revenue-raising capacity of each community and from now on would be based on the adjusted population. This means that will be counted from the resident population and therefore more tourism communities will not receive money depending on what they have actually collected. This change is one of those who have corrected the Balearic Islands, which have collected an alternative proposal with dozens of improvements to document experts.

That means Catalunya, which accounts for 25% of tourism will not receive anything for that. All the evils of tourism shall be borne by the Government, you will not receive any compensation for it.
Also, if Catalunya received so far 19% VAT distributed by the government ( in proportion to GDP but not tax collection in Catalonia is 24.5% quantity), from now on you will receive 16%.
I repeat, that 16% is half that distributes the Spanish government and the other half are the remains whole for her, therefore Catalunya willrepresent you can only have 8% of the total when collected 24, 5%.That represents one - third ...
Roughly means that of the 16,000 million Catalunya collects only stay in Catalonia just over 5,000 million ...
Iceta, Colau, Arrimadas and company, happy guess ...

In addition, it is expected to create a collegial VAT, which would allow communities to rise this tax but only if they agree unanimously difficult because some have already moved not want to. In addition, also it provides for setting a minimum and a maximum in the inheritance tax

The document does not address the money is distributed taking into account the standard of living in each community, just mention it as something to consider later.

Debt restructuring
Another of the most controversial issues is the possibility of canceling the debt that communities have contracted with the State through mechanisms such as regional liquidity fund (FLA). In this case, the committee does not foresee the possibility of an acquittal, but the door open to improve conditions through a reduction or a debt restructuring is left.

Finally, now on the table the discussion of the role of provincial communities, the document will make clear the discomfort of other communities with parallel negotiations to update the Basque quota.One last shows that each has chosen to sweep home before offering changes.

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