The General Council of Economists, the body that groups the colleges of economists of the State, proposes that the Spanish government adjust its income tax bracket (IRPF) to the salary increases of recent years. According to the entity's calculations, a Catalan worker with a gross annual salary of 25,000 euros would save about 252 euros annually, while for higher salaries, such as 400,000 euros, the savings would exceed 2,100 euros annually.

Only in two of the last twenty years – in 2008, under the government of José Luis Rodríguez Zapatero (PSOE), and in 2015, under Mariano Rajoy (PP), which was actually a tax reform –, the Treasury has deflated the income tax (IRPF) rate, which means adjusting it to inflation to prevent paying more tax despite having the same or lower real income. And the last two times similar measures were taken was before the call for general elections, in March 2008, in which Zapatero was re-elected for a second term, and in December 2015, when Rajoy repeated in office. Between doing it and not doing it, there is an essential difference: from 2019 to 2024, it has meant additional revenue for the State of between 9,700 and 16,700 million, according to various studies. From the left-wing space, led by the PSOE, it is considered that this type of adjustment advocated by the PP and which applies to all incomes, especially benefits the highest ones. And, therefore, they advocate for more selective and direct measures for low or middle-income families, such as reductions and rebates on public transport and others.

The State closed 2025 with the lowest public deficit since the outbreak of the financial crisis of 2008, thanks to a new historic record in tax collection, as reported this Tuesday by the Ministry of Finance.

Oriol López (Mollet del Vallès, 1978) is the deputy general secretary of ERC and one of the party's negotiators in the talks with the Government that, for the moment, have led to the withdrawal of a budget that was already being processed, for the first time.

Any news we discuss here must be understood within the context of a war that increasingly affects us. War first in Ukraine, and now in Iran and Lebanon. The price of oil has climbed again, and we know that when gasoline goes up, everything else goes up. Our economy currently depends on two politicians, Netanyahu in Israel and Trump in the United States, who don't care about any of this because war gives them free rein to do whatever they want. For example, Israel has attacked the world's largest gas fieldSo this war, which the United States has called "Epic Fury," is bringing us epic inflation and epic disaster, like everything Trump's inept finger touches, especially when he lets himself be swayed by the Israeli lobby and trusts his intuition more than his generals. It's becoming clearer every day that the United States won't bring down the ayatollahs' regime with bombings and targeted assassinations.

John von Neumann was not particularly fond of lanterns –Deception—in poker games—but the father of Game Theory recognized its usefulness in keeping any zero-sum negotiation on edge. Of course, he also warned that one had to know how to play them. To begin with, the success of any lantern It depends on whether the other party—Von Neumann's study focused primarily on two-way negotiations—can consider it plausible. And this is precisely where the negotiating strategy between ERC and PSC regarding the 2026 budget has failed. Salvador Illa set a deadline, March 20, for the Republicans to stop dragging their feet and engaging in a game of chicken—another concept from Game Theory, which explains that both sides move toward the precipice without wanting to be the first to concede—that has ended in a stalemate. The PSC and ERC have given each other more time because it was the only way to ensure that no one loses.

The approval of a regional government's annual budget should be addressed as a priority, separate from other political demands that fall under different institutional purviews. When public accounts are extended, the administration loses the capacity to update programs, adjust budget items to meet new needs, and implement more ambitious public policies. In particular, increasing social spending—in areas such as healthcare, education, and support for vulnerable groups—requires a current and fully operational budgetary framework. Conditioning the approval of this budget on demands whose fulfillment primarily falls to the central government introduces a deadlock that ultimately affects citizens directly, who see policies that are indeed within the regional government's jurisdiction delayed or limited.

Last year, the Catalan government collected a record €6.069 billion in its own and transferred taxes, an unprecedented amount representing a 9.9% increase. This figure includes both taxes collected by the Catalan Tax Agency (ATC) and those collected by the central government and subsequently transferred, such as the 2025 tax. The amount, which doubles the revenue obtained in 2015, was driven by wealth and property transfer taxes, which rose by 9.6% to €835 million and 17.6% to €3.263 billion, respectively. Another major transferred tax, inheritance and gift tax, increased by 0.8% to €1.162 billion. Furthermore, the fiscal year closed with a deficit of 0.51% of gross domestic product (GDP), as explained by the Minister of Economy, Alícia Romero. For the second consecutive year, a current account surplus was achieved, reaching €549 million, compared to €381 million in 2024, and 97.2% of the total planned expenditure was executed.

Congress will again debate and vote next week on extending the social safety net, which includes, among other things, measures to prevent evictions of some vulnerable families. This comes after a failed attempt by the Votes against from the PP, Vox and JuntsThe Spanish government is taking the bill to the lower house for the second time – this time, with the pension increase included in a separate document. Currently, Pedro Sánchez's administration does not have the necessary votes secured, and the continuation of measures that have been sidelined – but have been in place for five years – depends on this. These measures include income tax deductions for building renovations that improve energy efficiency. In Catalonia, 34,383 homes have benefited from these deductions between 2021 and 2024, according to data from [source missing]. Special Rehabilitation BulletinThe Housing and Land Observatory and the Tax Agency, which ARA has accessed, have provided data.

ERC was demanding a gesture from the Socialist Party (PSOE) to unblock budget negotiations, specifically a commitment to Catalonia's handling of personal income tax (IRPF) revenue. This gesture, for now, will not come from the PSOE, as the Republicans initially hoped. However, this morning, the President of the Generalitat, Salvador Illa, explicitly stated his "total" commitment to ensuring Catalonia assumes responsibility for IRPF collection. "My commitment to advancing the management of IRPF and the Catalan Treasury is total," Illa affirmed. What will this translate to? In a brief address, delivered without taking questions during the meeting of the Generalitat's Technical Council, the head of the Catalan government offered no details, but did state that he would "promote agreements and parliamentary initiatives to make it possible." This Saturday, Esquerra will hold an extraordinary meeting of its executive committee early in the morning (8:30 a.m.), where they will have to decide whether the president's gesture is sufficient to begin budget negotiations. Then the leadership convenes its national council, where it must present the scenario agreed upon by the executive committee.

The creation of the investment consortium – the body that should serve to oversee investments in Catalonia – was meant to serve as dazzling for ERC to open talks with the Catalan government on the budget, While negotiations continue for an agreement on income tax collection, the president of the Republican Left of Catalonia (ERC), Oriol Junqueras, confirmed on Monday that his party is withdrawing its proposed income tax bill. This gives the ERC more time to accept a commitment it already made for the investiture of Salvador Illa. Junqueras warned, however, that the red line remains: they will not begin negotiating the Catalan government's budget until an agreement is reached allowing the Catalan Tax Agency to collect income tax. The ERC's plan now is to present the potential income tax agreement as part of the amendments to the financing law, which Finance Minister María Jesús Montero is expected to present at some point. "If we don't have guaranteed support for these amendments, we will understand that the Socialist Party (PSOE) is not interested in Salvador Illa having a budget," Junqueras stated at a press conference. If the ERC's proposed law had been voted on next week, it could have revealed a break with the PSOE had the Socialists not supported it. This is a possibility the Republican leadership has sought to avoid. In fact, if there is no agreement with the investment consortium before next week's plenary session, Esquerra might also end up not presenting the law, according to Republican sources. The Socialists maintain their opposition to ceding the power to collect personal income tax in Catalonia—as stipulated in Salvador Illa's investiture agreement—and to the other autonomous communities. The Republicans' proposed law included the modification of three laws, among them the Organic Law on the Financing of the Autonomous Communities (LOFCA). Junqueras has insisted that for Esquerra to agree to negotiate a budget, it is not enough for the PSC to endorse the amendments to the financing law: "We want the support of the entire PSOE. If it's not clear, it means they don't want a budget." "Since we are convinced that everyone will eventually understand the benefits of the financing model, it is easier to approve the amendments already passed regarding personal income tax in the financing model," Junqueras explained. What time limit have they set for negotiating this issue? The ERC leader has left it in the hands of the Catalan Socialists, whom he believes are the most interested in having a budget. "If the Catalan government wants a budget, it will surely find a way to convince the PSOE. The more of a hurry the Catalan government is in, the harder it will try to convince the PSOE," he stated. In fact, the ERC leader has indicated that if no agreement is reached to open budget negotiations, his party is "predisposed" to negotiate supplementary appropriations. A year ago, the Republicans, along with the Comuns, supported all the budgets presented by the government.

Amid stalled negotiations regarding future income tax collection, the Catalan Tax Agency (ATC) will hire 152 temporary staff members to handle tax returns during the upcoming tax season, starting in May. This represents a 49% increase in such personnel compared to last year. In addition, 36 new offices will be opened throughout Catalonia dedicated to this task. Eight of these will be temporary platforms exclusively for tax return processing, located in Barcelona (three centers), Girona, Lleida, Tarragona, the Baix Llobregat area, and the Besòs area. This tax season, like last year's, is a trial run, as the ATC will assume responsibility for tax collection in the future, as stipulated in the agreement between the PSC and ERC parties for the investiture of Salvador Illa. Negotiations on this matter are ongoing. They are currently strandedThe Republicans are demanding the ability to collect 100% of the Personal Income Tax (IRPF) within two years, while the Socialists are resisting this and believe the timeframe should be longer. The Catalan Tax Agency's (ATC) participation in the 2025 tax return campaign, which was already strengthened last year, involves the announcement of 16 positions for tax management technicians and 136 positions for administrative staff, to be assigned to various locations in Catalonia. The tax management technician positions (subgroup A2, level 22) will be located in Barcelona, ​​Girona, Lleida, and Tarragona. Maximum territorial coverage

The ATC will provide the service in collaboration with the State Tax Administration Agency (AEAT), ensuring maximum territorial coverage, specialized technical advice, and the interconnection of computer systems between both organizations. The service will offer telephone support from May 6 to June 30 and in-person support from June 1 to 30. Another element in preparing the ATC to take on more work and a greater volume of resources was an agreement with the State Treasury to jointly manage the vehicle registration tax. This agreement concerns a tax that contributes approximately 140 million euros annually. It took almost a year to sign after it was announcedIf the Catalan Tax Agency (ATC) were to collect 100% of the Personal Income Tax (IRPF), it would go from managing approximately €5 billion annually (currently, between its own and transferred taxes) to over €30 billion annually. To apply for positions for the income tax campaign, applicants must hold the required qualifications to join the Catalan Government's technical corps of tax managers and demonstrate C1 level proficiency in Catalan or equivalent. Interested parties must submit form ATC/007/2026 before February 2, 2026, attaching the corresponding curriculum vitae. Regarding administrative positions (subgroup C1, level 14), service will be provided in person at various locations throughout the region. The qualifications for entry into the Catalan Government's administrative corps and C1 level Catalan accreditation are also required. In this call for applications, a total of 10 positions are reserved for people with legally recognized disabilities. Shortlisted candidates will have to pass a multiple-choice knowledge test, scheduled for February 27th in Barcelona, ​​and a personal interview, which will serve to assess their professional skills and provide further information on their curriculum vitae. Selected candidates will receive comprehensive pre-training during the month of April, jointly provided by the Catalan Tax Agency (ATC) and the Spanish Tax Agency (AEAT), which will form part of the contract period. The positions will be filled through secondment or temporary appointment for a three-and-a-half-month period, from March 30th to July 10th, 2026. The experience gained and the length of service rendered during this campaign may be considered as merits in future job offers from the Catalan Tax Agency.

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A new tax cut in Madrid is in response to the financing model proposal agreed upon between the ERC and the PSOE. Isabel Díaz Ayuso announced this Monday that her region will lower the regional income tax brackets by half a percentage point starting next year. These brackets were already the lowest in the country. The minimum rate will be 8% and the maximum 20%, further distancing itself from Catalonia, where the rate ranges from 9.5% for low incomes to 25.5% for taxpayers earning more than €175,000 annually. With this income tax cut, Ayuso boasted that a Madrid resident with an annual salary of €35,000 will pay €635 less than a Catalan with an equivalent salary. Furthermore, the president frequently points out that Madrid lacks its own taxes and contrasts her model of "freedom" with the "confiscation" carried out by the Catalan government. According to the regional government's calculations, 2.9 million taxpayers will benefit from the new tax cut, saving them €500 million. Madrid has implemented 34 tax reductions since Ayuso became president in 2019, and overall, sources within the regional government estimate the savings for Madrid residents at €40 billion.

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Visibly pleased with the regional financing proposal presented by Spanish Vice President María Jesús Montero, but aware that it's impossible to obtain 100% of what they want, the Catalan Minister of Economy, Alícia Romero (Caldes d'Estrac, 1976), received ARA at the Palau de la Generalitat, convinced that Catalonia will succeed. She also stated that she doesn't see it as impossible for the proposal to go ahead.

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The president of ERC, Oriol Junqueras, is boasting about the agreement reached on the new financing model, emphasizing that no other Catalan government has ever achieved such high levels of economic sovereignty.

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At the end of the year, we usually think about how we can save on income tax. Let's start, however, with some bad news: in Catalonia—compared to other autonomous communities—the possibilities are quite limited. While in other regions everyday expenses like gym memberships can be deducted, here the existing deductions are often difficult for most taxpayers to claim, such as the purchase of an electric vehicle, home renovations with energy efficiency improvements, or compensation for losses on stocks. One of the few truly common options is reducing taxable income through contributions to private pension plans. A few years ago, this instrument was much more attractive, but currently the reduction is limited to a maximum of €1,500 per year for individual contributions, or up to €10,000 in total if the company also contributes. In other words, no matter how much a person contributes, for example, €20,000 to their individual pension plan, they can only reduce their taxable income by €1,500 on their tax return. Although this mechanism offers an immediate tax benefit, in the long run it presents more disadvantages than advantages. On the one hand, the money is locked and can only be withdrawn under certain circumstances stipulated by law. The positive aspect is that it is a financial instrument that ends up yielding a positive result in most cases, given its long-term nature. On the other hand, when the money is withdrawn, it is taxed in full as employment income, applying the personal income tax rate in force at that time. Often, moreover, the future tax rate is higher than the one that applied when the income was generated. Therefore, it is not a real tax saving – the State never forgoes collecting – but simply a deferral of tax payment.

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There are taxpayers who, even now, after the year in which they filed their 2024 income tax return (IRPF), have still not received the refund they requested. This is money they overpaid to the Tax Agency, on which the Agency does not pay interest. Although the Tax Agency has shortened refund processing times, which in some cases are completed in a matter of days, at the beginning of this year there are still 388,899 taxpayers who have not received their refunds, representing 2.6% of the total. Each year there is a similar proportion of outstanding returns, and these are the ones the Tax Agency scrutinizes most closely.

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There is one driving force preventing the Spanish government's ability to manage from grinding to a halt: tax revenue. Through November, tax collections have exceeded €300 billion for the first time. This unprecedented level, achieved just one month before the end of the fiscal year, suggests that 2025 will be another record-breaking year for revenue.

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The Ministry of Labor is paving the way for an increase in the national minimum wage (SMI) by 2026. In the first meeting with the major unions, CCOO and UGT, and the Spanish employers' association CEOE, held this Tuesday afternoon, Yolanda Díaz's team sought to gauge the social partners' interest in raising the SMI by 2026. Sources from the Ministry of Labor explained that the meeting served to convey to the social partners the report from the committee of experts, which recommended a 3.1% increase without taxation and a 4.7% increase if income tax is paid. committee of experts It falls short of the unions' proposals and also deviates from the employers' proposal, which called for a 1.5% increase. However, this increase would mean that recipients of this minimum income would not be subject to income tax. Following this initial contact, the central government must make a first proposal on the minimum wage for 2026, with the aim of reaching an agreement within the framework of social dialogue. The unions expressed their openness to negotiation, while the CEOE (Spanish Confederation of Employers' Organizations) did not comment. Maximum tension

The negotiations are taking place at a time of maximum tension between employers and the Ministry of Labor. In fact, sources involved in the social dialogue assume that any agreement reached will be bipartite (government and unions), and that employers are unlikely to join. This Monday, the CEOE (Spanish Confederation of Employers' Organizations) was no longer part of the agreement to pass the new leave for bereavement and palliative care.

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We read in The World that Andalusians "will be able to deduct their gym expenses on their income tax returns."

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