Rajoy permits Extremadura PP to lower and levy taxes

A desire to add another regional government to the list of those defeated on May 22 has inspired the president of the PP, Mariano Rajoy, to approve potential taxes on donations and inheritance, which would be levied by the likely Extremadura government.

The PP barely won in the Extremadura region, so it will need some more support in order to elect candidate José Antonio Monago as governor of the region. They are going to approve a tax increase related to donations and inheritance, which is contrary to PP ideology in other regions.

Monago met with Rajoy yesterday in Madrid to present a proposal for how a tax increase could work. Simply, tax modifications would apply to an individual?s situation. Like other taxes, this tax would be progressive and would increase in proportion to the amount a taxpayer inherits.

The tax would also increase if the inheritor is not directly related to the deceased person. Interestingly, Monago proposes that instead of applying a progressive and adaptable tax to the status of an individual?s personal wealth before and after the inheritance. Currently, this tax considers a taxpayer?s pre-inheritance assets, but does not adjust to the individual?s circumstances after inheritance.

Edited in English by Brandon Dyches and Jose L. De Haro (joseluisdeharo@eleconomista.es)