Díaz Ayuso announces that the Community will deflate the regional personal income tax rate to prevent the people of Madrid from paying more taxes

With this measure, advanced during his speech at the informative breakfast organized by El Debate, “if a family earns more that year, their income bracket will be adjusted so that they continue to pay the same taxes and do not lose their purchasing power due to inflation. ”. “If we do nothing, it would cause a tax increase that we want to avoid, a covert increase that only makes it even more difficult for families to access a cost of living that is constantly growing due to all of the above,” the president has indicated.

In this sense, Díaz Ayuso has pointed out that it is a proposal from the president of the Popular Party, Alberto Núñez Feijoo, and “that it joins the economic model that has benefited Madrid so much in recent years”.

Rise in wages and prices

The latest CPI data places it at 8.3% and forecasts suggest that it will reach double digits in the coming months. This situation, together with the energy crisis and the war in Ukraine, is having a negative impact on citizens’ pockets, raising the price of fuel and the shopping basket, among other issues.

On the other hand, the rise in salaries will negatively affect income tax. To prevent this from happening, the regional government is going to deflate the rate so that purchasing power is not lost and help taxpayers to bear the escalation of price increases.

Increasing a salary by 5% due to inflation can cause a person to go from their current tax bracket to the next higher one, which means paying more. For example, for a taxpayer who declares income of 40,000 euros, not deflating the rate would mean paying 300 euros more.

Deflation will make it possible to prevent this from happening so that the same contributions continue as before and the salary increase can be used to deal with a higher cost of goods and services. If the taxpayer’s salary does not increase, this measure constitutes a tax cut because he would pay a lower effective average rate.

Historic reduction in Income Tax

The regional government approved in 2021 the largest reduction carried out so far in the regional section of personal income tax with a reduction of half a point in each of them. It is an electoral commitment that has been in force since January 1 of this year and from which Madrid residents will benefit in their 2022 income tax return.

It is estimated that it will mean a saving of 334 million euros, with a greater impact on low incomes, with 5.5%, compared to 2.4% for high incomes. In this way, Madrid is consolidated as the region with the lowest tax rates, standing at 8.5% the lowest and 20.5% the highest.

45 day waiting list

In another order of things, Díaz Ayuso has indicated that the regional government has set itself the objective of returning this year to the 45-day waiting time for an operation that existed before the pandemic and “in a few years, manage to reduce it to 30 days. , being the region with the lowest waiting list in all of Spain”, he highlighted during his speech.

For this, there is a budget forecast of 65 million euros, extraordinary activity has already been promoted, as well as the use of hospital support centers (Red Cross and Santa Cristina) and since the summer it has been possible to reduce by 30% the delay.

With this, the people of Madrid continue to be the Spaniards who wait the least time to be operated on. With current data, the average delay in the region would be 62 days, half the national average (123). In the case of the waiting list for consultations, Madrid is also positioned at the head with an average time of 56 days compared to 160 days in Aragon, 118 in the Canary Islands, 109 in Navarra or the 95 that patients in the Community wait for Valencian.

Addictions Center in Santa Cristina

Also, the president of Madrid has announced that next month the Comprehensive Center for Prevention and Research in Addictions will open at the Santa Cristina Hospital. The professional team will consist of a child and adolescent psychiatrist; an adult psychiatrist; a clinical psychologist, a mental health nurse specialist and a social worker.

“We fear that mental health will become the subject of a political campaign as worrying data on suicides or depressions occur, especially after the pandemic,” said the president, who assured that the Government of the Community of Madrid “has worked since the first day” in a Mental Health and Addictions Plan, endowed with 45 million euros and which will soon be expanded by a second.