José Antonio Monago, president of the Extremadura regional government, decided to lower his region's personal income tax. The change will be small rather than sweeping. Citizens will only enjoy an average of a 23-euro reduction in their taxes.
Even though this is a negligible amount for home budgets, it should still be applauded considering the country's financial weakness. Local governments in Extremadura have met their deficit goals and has room on its balance sheet to adopt the measure.
José Antonio Monago holds a winning hand, because Extremadura, an old socialist bastion, takes in the highest net revenues (3 billion euros) of any regional government and its budget is in the best shape, too.
