4 ms·

In Spain The exact amount varies between regions. Wealthy regions like Madrid have abolished it. Non coincidentally, the regions that are economically doing b

• X6S1x6Okd1st 5y ago
  Interesting! Do you know of a good write up that captures nuances like this? Also be careful with the causality :)
  • bassman9000 5y ago
    It's been studied over and over. Lower taxes mean more economic activity, and less tax evasion. An article in Spanish https://www.elindependiente.com/economia/2021/04/25/madrid-dejara-de-recaudar-450-millones-de-euros-con-la-bajada-de-impuestos-de-ayuso/ https://www.elindependiente.com/economia/2021/04/25/madrid-d... Another one https://www.libremercado.com/2021-08-03/el-efecto-laffer-de-ayuso-madrid-logra-un-record-historico-de-recaudacion-con-los-grandes-impuestos-6806178/ https://www.libremercado.com/2021-08-03/el-efecto-laffer-de-... En concreto, la región de Díaz Ayuso recibió de la caja común apenas el 23% de lo que ingresó en 2019. Meaning that Madrid out of the 100% taxes it collects for the State, only 23% end up in Madrid. But that's still fine, because of the higher economic activity. Madrid has been accused of "tax dumping", by having way lower taxes than other regions, and still: Tanto es así, que Madrid aporta en torno al 68% del sistema de solidaridad interterritorial (más de 4.000 millones) frente al 25,5% de Cataluña o el 6,6% de Baleares. Meaning that, even with low taxes, Madrid funds 68% (+4 billion Euro) of the inter-region fund system. https://en.wikipedia.org/wiki/Laffer_curve https://en.wikipedia.org/wiki/Laffer_curve