Wednesday, March 7, 2012

Where Do Catalan Taxes Go?

95€ out of every 100€ of taxes paid by Catalan citizens and Catalan companies go directly to the Spanish government. Only 5€ make it directly to the Catalan government. The kinds of taxes paid by Catalan companies are: VAT, income taxes, corporate taxes and special taxes.

The situation is very different when we take a look at the fiscal relationship between Spain and the European Union. Spain receives an additional 15€ per 100€ from the European funds (annually for the period between 1986 and 2010).

Out of these 110€ (95€ directly from Catalonia and 15€ more from the EU), Spain returns 55€ to the Catalan government, it spends 35€ towards improving the standard of life of various Spanish regions, and it spends 20€ in absurd (and most likely corruption-laden) investments.
What do we mean by absurd investments? Here are four examples:

• High speed train (50,000 million euros)

• Highways with very low usage (35,000 million euros)

• Airports with no traffic, or non-profitable (6,000 million euros)

• Subsidies and too many government employees.

Consequently, for each 100€ of taxes paid by the Catalans, the Catalan government receives only 60€. As a result, the Catalan government must increase its debt in order to cover the expenses of its budget. The growing amounts of interest that the Catalan government must pay reduce the available funds for  Catalonia. This translates into high levels of interest and debt payments.

To sum it up, 40% of the taxes paid by Catalans never return to Catalonia. They are used to finance other regions in Spain. In fact, belonging to Spain costs Catalans some 40% of all taxes paid.

Based on the study Where Do Catalan Taxes Go? by the
CCN (Centre Català de Negocis).

3 comentaris:

  • Miss Crowley says:
    March 7, 2012 at 12:18 PM

    May I give you some piece of advice?

    I am a regular reader and supporter of the Catalan cause, but I can't say I agree with this.

    You're talking about Castelló's ghost airport, is it? Now, I presume you know it was partly funded by private institutions and individuals who needed to get some laundering done, and the bureaucratic paperworked was filled by our friend Mr. Camps, who ensured the project would get a pass. I don't think it's right to include that kind of data in a serious research; that's not where people's tax money normally goes to. Valencia, they serve some delicious paella with a side of reeking corruption.

    I hope you know, too, that benefits (you call them subsidies) are something people need, whether be them for the profit of one individual alone or an enterprise. You have or will benefit from that money someday too.

    That is just my humble opinion, though.

    As for your writing... If I were you, I'd ask someone native to proof-read before publishing, there are some mistakes that give an overall impression of carelessness --mainly due to a lack of linking elements and some minor grammar mistakes. And I suggest that you do check, understand and compare your source material as well.

    Please feel free to answer me by e-mail if you want to.

    Good evening.

  • Miss Crowley says:
    March 7, 2012 at 12:18 PM

    May I give you some piece of advice?

    I am a regular reader and supporter of the Catalan cause, but I can't say I agree with this.

    You're talking about Castelló's ghost airport, is it? Now, I presume you know it was partly funded by private institutions and individuals who needed to get some laundering done, and the bureaucratic paperworked was filled by our friend Mr. Camps, who ensured the project would get a pass. I don't think it's right to include that kind of data in a serious research; that's not where people's tax money normally goes to. Valencia, they serve some delicious paella with a side of reeking corruption.

    I hope you know, too, that benefits (you call them subsidies) are something people need, whether be them for the profit of one individual alone or an enterprise. You have or will benefit from that money someday too.

    That is just my humble opinion, though.

    As for your writing... If I were you, I'd ask someone native to proof-read before publishing, there are some mistakes that give an overall impression of carelessness --mainly due to a lack of linking elements and some minor grammar mistakes. And I suggest that you do check, understand and compare your source material as well.

    Please feel free to answer me by e-mail if you want to.

    Good evening.

  • Andreu Cabré says:
    March 7, 2012 at 1:38 PM

    Dear Miss Crowley,

    Thanks for your comment. I'm glad you're a supporter of the Catalan cause.

    I think you should refer to the CCN study in question if you worry about the facts presented here. If any of the data we present is wrong, it is most likely our own fault. Please understand that most of us at Help Catalonia are native Catalan speakers, and not all of us can write English equally well. We try our best. Since you say you're a supporter of our cause, I encourage you to help us as well.

    Regarding what you call benefits, I truly feel you are plainly wrong. A subsidy is what whole industries get from the government in order to survive, or because they have strong enough lobbies that let them get away with it. An example of this would be the huge subsidies corn receives in the US. Without these subsidies, it would not be profitable. Benefits, on the other hand, are the extra economic perks you get when you work at a company—like health insurance and stock options. People call them 'bennies' too. :)

    Sincerely,
    Andreu Cabré

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