Ximo Puig announces a tax cut for Valencians who earn less than 60,000 euros

The amount exempt from taxation increases by 10% The new personal income tax rate includes new sections adapted to inflation The Consell will approve a tax deduction of 100 euros for mortgages The president of the Generalitat, Ximo Puig, has advanced this Tuesday in the Debate of General Policy of Les Corts some of the measures that the Valencian tax reform will include, which will take effect “from now” and retroactively from January 1, 2022 and will benefit all citizens who earn less than 60,000 euros a year, ” the majority of society”. Specifically, the first measure is to increase by 10% the amount exempt from taxation for all Valencians, “the maximum allowed by the rule”; the second is a new autonomous personal income tax rate for 2022, with new sections adapted to inflation, and the third is the 10% increase in “all tax deductions and rebates”. In his initial intervention in the General Policy Debate In Les Corts, Puig has emphasized that these measures are aimed at taxpayers who earn less than 60,000 euros; that is, 1.34 million Valencians and 97.4% of the total. They will apply to the 2022 income tax return. “Our perspective is clear: no to fiscal populism,” he stressed, insisting that it is a reform designed for the majority. In addition, he has defended that the Community will maintain the wealth tax because “only 0.5% of Valencians are taxed” for it. In 2022, these people have contributed 187 million for this tax, which rises to 200 million thanks to the work of the inspection. In general, Puig has ensured that this tax reform is in line with the recommendations of the Commission and the European Central Bank and the International Monetary Fund, with the aim of helping medium and low incomes, promoting employment and “protecting those who are most punished by inflation”. Of course, he has remarked that all those who exceed 60,000 euros in income “will maintain their efforts fiscal” in the reform as a whole. As he pointed out, with the new income tax brackets, incomes of 10,000 euros will save 21% (94.5 euros), those of 20,000 euros 7.3% (117 euros) and those of 30,000 euros 2.2 % (67 euros). Bonuses and deductions Regarding the bonuses, it has guaranteed that they will all be increased by 10% and incomes of up to 30,000 euros will be able to benefit instead of 25,000, which will increase the number of beneficiaries. Some of them are deductions for children, home rentals, large or single-parent families, work-family balance, or daycare or school expenses. Thanks to this reform, Puig has highlighted that a young single person under 35 who earns 28,000 euros and amortizes 8,000 of his mortgage, he will have to pay 530 euros less on his income statement. As a whole, he has predicted that it will mean savings of more than 150 million for families. On the other hand, the ‘president’ has announced that the Consell will approve a tax deduction for fertility treatments for Valencian women who cannot be treated at the public health for reasons of age or low probability of pregnancy. “It is an ethical imperative because money should not be an impediment to being a mother,” she claimed. As a balance, she highlighted that the tax reform promoted by her government in 2016 has already allowed more than a million and a half Valencians with income medium and low will save an average of 860 euros per person in their annual declarations. Tax deduction on mortgages of 100 euros The regional government will approve a tax deduction of 100 euros for mortgages of certain incomes. This has been indicated in his intervention in the Debate of General Policy, as part of the “public response to inflation”. The aid will benefit individual incomes of up to 30,000 euros and for joint taxation of 47,000 euros. Puig has pointed out that “cohesion cannot be understood without the constitutional right to housing” and lamented that “the rise in interest rates has opened another source of serious uncertainty in many families”, for which the administration must “counteract that uncertainty difficulty “. Along these lines, he has indicated that the Young Bonus for Rent aid is already being activated and in the next three weeks the first transfers will be made: 3.8 million direct aid for the rent of the youngest. “Over the next two courses, we will invest 23 million in this program,” he said. In addition, he explained that the second vice president and Minister of Housing, Héctor Illueca, will deploy “two important measures before the end of the year.” One of them will be “the approval of a Public Housing regulation that will meet a historic demand from developers.” The new text, which will be published in December, updates the 2021 regulation, “it is the result of dialogue with the sector” and ” It will make it possible to streamline public-private collaboration to speed up the Generalitat’s public promotion plans.” The other measure, scheduled for October, will be a new tender for plots to promote the construction of public housing. “With this initiative, we aspire to build 1,090 homes on public land distributed in 51 areas of the Valencian Community. Together, 50 million will be invested in these promotions, 50,000 euros per home. It will mobilize 151 million public-private collaboration.