When in mid-2021, just after approving the pardon for the Catalan coup plotters, the Government reduced VAT on electricity from 21% to 10%, after months saying that the European Union did not allow it to do so, the PSOE boasted that this meant a tax reduction of 857.5 million euros until the end of that year 2021, when prices were supposed to have normalized and VAT would rise again. At the same time, the suspension of 7% of the Tax on the Value of Electric Power Production was also approved during the third quarter of that year, with an estimated impact of another 400 million euros.
A year later, mid 2022just after the electoral debacle of the PSOE in Andalusia, The Government reduced the VAT on electricity from 10% to 5%, while extending the reduction of other taxes linked to electricity. This second reduction in income due to tax rebates was valued at 3,600 million euros. A few days ago, in an interview in La Ser, Sánchez announced another gas VAT reduction from 21% to 5%, which will be in force initially from October to the end of the year and which he valued at 190 million euros, if it is not extended. . “The idea is that there is fiscal justice, an equitable distribution of the consequences of Putin’s war”, this is how Pedro Sánchez justified his tax reductions.
Yesterday the president of the Junta de Andalucía, Juanma Moreno announced that he will approve his “sixth” tax cut with “powerful rebates closely linked to the middle and working class”, collecting the 100% wealth tax bonus and a deflation of personal income tax in the 2022 declaration. Tax rebate that valued at 360 million euros to help “mitigate » the effects of inflation among Andalusians, prevent taxpayers subject to Wealth Tax from leaving Andalusia and try to encourage certain high-income earners who already spend long periods of time in Andalusia to establish their residence there, contributing with their taxes in community.
The first reactions by the PSOE to these tax cuts in Andalusia were made by the spokesperson for its Executive and Minister of Education, Pilar Alegría, who stated that “what is going to affect all Andalusians is the cut that they are going to suffer throughout the Welfare State, that is, in Health, in Education or in different public policies to be able to abolish the tax». The next day, the Minister of Inclusion, Social Security and Migration, José Luis Escrivá, considered this tax reduction as an “extraordinarily regressive measure, just at a time when what is required is to make redistributive policies for the most vulnerable people due to the effects of the inflation”.
The level of demagoguery of this PSOE dominated with an iron fist by Pedro Sánchez is so brutal that when they announce tax cuts of more than 5,000 million euros they say that it is about doing “fiscal justice”, but when, days later, the PP announces other tax cuts of just 360 million euros, calling them “regressive” measures that threaten the Welfare State and endanger Health and Education. Minister Alegría must be reminded that when less than two months ago she appeared at a press conference at the PSOE headquarters to rule on the Supreme Court ruling that condemned the presidents of her party, Chaves and Griñán, for diverting 680 million euros allocated to the unemployed, which are almost double the tax reduction now announced by Juanma Moreno, justified his party colleagues and defended his embezzlement by saying that the perverse use of these funds “managed in Andalusia to safeguard hundreds of jobs and companies in times of difficulty.”
It seems incredible, but it is the same PSOE that defends and justifies the presidents of its party convicted of embezzle 680 million of euros from the Andalusian unemployed and announces a thousand million dollar tax cuts when it tries to cover up its pardon for the coup plotters or their electoral failures, the party that describes the very small tax cuts announced by the PP in Andalusia as regressive cuts in the Welfare State. Pedro Sánchez has infected the entire party with his shamelessness.