Governance in the State

The toads that Sumar swallows in order not to derail the coalition with the PSOE

The taxation of the minimum wage in the personal income tax is the latest clash between Yolanda Díaz and Pedro Sánchez

Pedro Sanchez and Yolanda Diaz at the congress
4 min

MadridYolanda Díaz showed her disagreement on Tuesday about the fact that Recipients of the minimum interprofessional wage (SMI) must also pay personal income tax (IRPF), and claimed that she had learned of the news through the media. The leader of Podemos, Ione Belarra, used from the corridors of Congress an expression that has already become popular on social networks: "You've been PSOEd". This toad – it remains to be seen whether Sumar will try to reverse it in Congress – adds to the list of clashes that both parties in the coalition have been involved in since the beginning of the legislature. Without Sumar in the government, say those close to Yolanda Díaz's party, the PSOE would not have as many incentives to make left-wing policies. But to achieve any success, Sumar must swallow some toads.

Reduction of the working day

Diaz accuses the Corps of being a "bad person"

Only a week ago, Díaz and the Minister of Economy, Carlos Cuerpo, appeared together at the press conference after the cabinet meeting, as a sign that they had made peace after the clash over the reduction of the working day. The Minister of Labour had gone so far as to call Cuerpo "almost a bad person" because he had questioned the magnitude of the urgency that, according to Díaz, the approval of the reduction of the working day by the cabinet meeting had. Finally, it was approved on Tuesday, February 4, a few weeks later than Sumar would have liked.

Limiting popular accusations

Sumar rejects a measure focused on the case of Begoña Gómez

The bill that the PSOE presented at the beginning of January to overthrow the Begoña Gómez case did not please Sumar either. The socialists want to limit the role of popular accusations –Vox, Manos Limpias and Hazte Oír, among others, are the ones involved in the case of Pedro Sánchez's wife– and Yolanda Díaz's party maintains that they are a very necessary instrument in the fight against corruption and that it has also achieved victories in court in the ' The norm is in process in the lower house and has not yet entered the amendment process in committee.

Tax on energy companies

Right-wing partners prevail: Junts and the PNV

One battle that Sumar lost was the extraordinary tax on the energy sector. The coalition government agreement with the socialists provided for its maintenance, as well as the banking tax. During the negotiation of the tax reform last December and in the absence of support in Congress –Juntos and PNV did not support it–, Sumar resigned itself to definitively burying this tax, despite having fought with the PSOE to maintain it at the time.

Military spending

An extraordinary investment of 1.129 million

Díaz made it clear last week that Spain cannot meet the 3% of GDP in military spending requested by NATO. This is an issue that distances PSOE and Sumar, and in April of last year Díaz made explicit his opposition to a Extraordinary investment of 1.129 billion euros approved by the Council of Ministers for "various weapons systems, material, ammunition and military equipment". The contribution from the contingency fund was also approved.

Reform of the SOCIMIs

Tax benefits for real estate investors are maintained

In the framework of the tax reform, Sumar had agreed with the PSOE to abolish the special tax regime that is currently enjoyed by listed public limited companies for investment in the real estate market (known as socimis). The measure ended up being derailed (partners such as Junts were against it) and, in fact, days before the agreement the socialists had proposed the opposite: giving tax or urban planning benefits to the socimis in exchange for them giving up their properties at affordable prices. Other proposals by Yolanda Díaz's party, such as the tax on yachts and luxury cars, also fell out of the agreement between Sumar and the PSOE for the tax reform.

Land Law

The PSOE's proposal pleases the PP

PSOE and Sumar also clashed with the land law promoted by the Ministry of Housing (PSOE). In fact, the socialists are going withdraw the law from Congress to avoid a parliamentary defeat, since they did not have the votes of the usual partners guaranteed. In that case, Sumar did not look favorably on the acceleration that was contemplated for the urban plans and pointed out that it went against legal security. On the other hand, the socialists defended it and continue to do so, to the point that they have sought out the PP to approve it. When in January the populars promoted a similar law in the Senate, the Ministry of Housing urged them to support their norm in Congress.

Benefits to owners

Aid for down payment on a flat and exemptions on personal income tax

In terms of housing, Sumar has also disagreed with some of the measures that Pedro Sánchez has promoted to encourage the reduction of rental prices and also to allow young people to buy a flat. Firstly, the PSOE proposes exemptions from personal income tax for those owners who set the price below the limit. On the other hand, Díaz also rejects the guarantees of the Official Credit Institute for the purchase of the first home for people with a maximum income, the aim of which is to ensure that the buyer does not have to pay an unaffordable down payment to the bank in order to be able to take out a mortgage. On the other hand, Sumar was barely able to force the PSOE to process an initiative to regulate seasonal rentals, although it is far from being approved.

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