Catalonia will continue to be a fiscal hell. These words were spoken by the president of the Community of Madrid, Isabel DÃaz Ayuso at the delivery of the Best Entrepreneurs of Madrid awards organized and Telva magazine. The competition, always healthy, that the two richest communities in Spain have maintained (they represent 40% of the GDP) has been declining in favor of the central peninsula in recent years. The independence movement has made a dent in the economic misrule of Catalonia. The flight of large companies has been joined since the beginning of the process by the flight of talent and the fall in foreign investment. Prehistoric times in Catalonia remain when Jordi Pujol, in the Generalitat, and Pasqual Maragall, in the Barcelona City Council, received, embraced and sold projects to the main foreign dignitaries and posh businessmen who landed in Barcelona.
High taxation, starting with inheritance and donation taxes, has been another negative factor that has affected Catalan competitiveness. Catalonia’s estates, not only pro-independence ones, have preferred to blame this decline on Madrid for legally using its autonomous tax instruments to facilitate investments. The capital effect of Madrid harms the rest of Spain, they say, without quite recognizing the straw in their own eyes. By comparison, no one in California – a state always on the verge of bankruptcy – occurs to blame Texas for attracting billionaires like Elon Musk because Texas tax policy is so much more attractive. Nobody says: Texas is stealing us!
The representatives of the Catalan business community – there are seven Catalan companies that are part of the Ibex 35 – have long requested that the Government of the Generalitat govern, be predictable and generate trust. They also request an improvement in the more abusive taxation, help and not hinder. Even those who continue to demonstrate as independentistas in private aspire to tone down their sovereignty claims. Now it does not touch, they repeat.
Hope is the last thing that is lost, but analyzing in detail the economic programs of the CUP, Junts and ERC does not generate much optimism. Continue generating the â € ˜country toolsâ € ™ to move toward independence, plus corporate profit taxes, high wages and homeowners, and other indirect tax cues. Only ERC, something is something, aspires to reduce autonomous income tax to attract international talent and create special deductions. Although he also wants a public bank and a “country” currency. What the hell!