The Community of Madrid contributes 7 out of every 10 euros to the inter-territorial solidarity system

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The 2018 data provided by the Ministry of Finance of María Jesús Montero confirm that “Madrid is the region that contributes the most with a huge difference to the set of regional financing in general and to the public services of the autonomous communities in particular. And also, these contributions are up compared to 2017, “he emphasizes Javier Fernandez Lasquetty, Minister of Finance of the Community of Madrid in a press conference called this Saturday morning.

Lasquetty appeared before the media from the Ministry of Finance with the firm intention of confronting the discourse that the PSOE has been making in recent years against the Community of Madrid with the firm objective of ensuring that the regional government ends up rising taxes.

“Since Pedro Sánchez the last of the socialists have constructed an absolutely false argument to force the Community of Madrid to raise taxes. Madrid does not take advantage of being capital nor does it tax dumping, it is absolutely false “, Lasquetty said.

The false argument of the PSOE

And he is not without reason. In October of last year Pedro Sánchez said that “the great patrimonies come to Madrid because they know that they are not taxed by inheritance and thus ends with sources of opportunity in other territories.” Or just a few weeks ago, in a state of alarm: “I think it is time right now to ask the autonomous communities, some autonomous communities, for the future that fiscal co-responsibility. The effort we need in the coming years to overcome this coup cannot be done with fisacles gifts, as we are seeing, and even less with gifts to those who have the most, “said the Prime Minister. Others, like Montero, directly accused Madrid of “dumping fiscal“.

These arguments are false, Lasquetty insists, since if Madrid has become “the economic locomotive of employment and activity in all of Spain” it has been precisely because of this policy of low taxes and economic freedom, he said. “It is the region that has become the largest volume of economic activity and currently ranks number 1 not only in income per capita but also in volume of GDP” and this “makes its impact on the whole of Spain is very important “, the counselor called attention. For this reason, he said that the Díaz Ayuso government “is not going to raise any taxes. Because the low-tax model works.”

And that is where the counselor emphasized and it is the argument that dismantles the discourse of tax dumping in Madrid. The Community of Madrid has not only become Catalonia as the economic engine of Spain, but it has also become a pole of growth and employment thanks precisely to the 15 years that has been applying policies of economic freedom and low taxes.

The most supportive community

And the rest of Spain takes advantage of that, because, precisely, the data that the Ministry has presented today is what highlights: The Community of Madrid is the one that contributes the most to inter-territorial solidarity, nothing less than 68% of the total (4,093 million), compared to 25.5% in Catalonia or 6.6% in the Balearic Islands, which are the other two autonomies that offer a negative balance.

This indicates that Madrid contributes practically 7 out of every 10 euros of that interterritorial piggy bank to pay for essential public services in the autonomous communities. And he does it with an addition, and that is that of everything he contributes, 80% stays in the solidarity piggy bank, while of what he collects only 20% remain in the community, “and that is how it should be, because we believe in Spain “, the counselor emphasized. This highlights the” pride of Madrid people for belonging to the most supportive region of Spain “, he said. In total of the 84,431 million euros that Madrid raised in In 2018 (personal income tax, VAT and IIEE), only 19,110 million remained in the community.The rest went to inter-territorial solidarity.

Fernández-Lasquetty pointed out that “each Madrilenian has contributed 614 euros to guarantee the provision of services in other regions“, and that this contribution to the Guarantee Fund for Fundamental Public Services has increased by 12% (430 million) during 2018. In addition, since 2013, the Community’s contribution to the Guarantee Fund it has increased by 52%.

Remember that the Guarantee Fund Its objective is to make available to the Autonomous Communities the necessary resources so that they can finance in a homogeneous way the fundamental public services that they provide to their citizens, such as health, education or social services.

With these data on the table, Lasquetty has clarified that reality “shows that far from being taken advantage of, the citizens of the Community of Madrid are financing a good part of the public services of the other autonomous communities thanks to the economic dynamism of our region, to facilitate entrepreneurship and eliminate bureaucratic hurdles and low-tax policies, “concluded Lasquetty.

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