Portal de Aguilas
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The Municipal People's rise to the regular plenary session in March to be held next Tuesday, the 30th, at 20:00 pm in the consistory aquiline, a motion to urge the National Government to repeal the increase VAT tax rates scheduled for July 2010.
The motion to be debated in plenary session by all political groups represented municipal, reads as follows:
In 2009 government accounts have shown the greatest deterioration in their history.
The significant deviations in the estimated income and expenditure for 2009 show that the state has lost control of the economic and public finance.
The Government, far from addressing the correction of this grave situation of imbalance of our public finances through a process of fiscal consolidation based on control of public spending and austerity measures in the activities of all government, presented a State Budget for 2010 that not only provide for an increase of 17% of non-financial expenditure of the State with regard to PGE, 2009, it introduced the largest tax increases of democracy, with the burden of all the progressive correction of the deficit in a hypothetical increased revenues resulting from tax increases approved for 2010.
Both empirical evidence and numerous studies show that the rise in consumption taxes in an economic crisis such as that reflected their own budgets, is an unwise measure because, by its negative effects on consumption and therefore investment and jobs, will hurt economic recovery not only have impact on revenue.
Thus, among other agencies, the OECD warned of negative effects on our economy will have the VAT hike and recommended to the Government, in its semiannual Outlook published in November 2009, to postpone the increase in VAT to 2011 "to so that the economy recovers more solid. "
Besides the negative impact this increase will have on products and services such as clothing, footwear, household appliances, electric bill, phone bill, car, housing, food, hotels, restaurants, ground transportation ..., municipalities and regional government will drastically diminished their capacity to procure works and services provided to citizens, not counting the damage besides the VAT hike will lead also to the projects contracted under the current State Fund for Employment and Local Support.
At this cut will be added to 3,000 million euros less than the Local Authorities no longer receive state transfers for this year.
With these data, the economic prospects of local governments and the instruments to tackle the serious financial situation will not only become worse, which envisions a truly bleak picture for the second half of this year.
But, still, the big losers will be doubly punished citizens themselves, in their difficult access to basic consumer goods and the quality of service delivery they receive from City Hall.
Therefore, the Municipal People's Party for consideration in plenary to approve the following agreements:
FIRST .- To urge the National Government to repeal the increase in VAT rates scheduled for July 2010.
SECOND .- To urge the Government to immediately negotiate with political parties and most representative associations of local, joint reform the funding system and local government, which ensures that Local Authorities of an institutional framework and adequate financial powers to address the current difficult situation.
THIRD .- To transfer of these agreements to the Prime Minister, the Second Vice-President and Minister of Economy, Third Vice-President and Minister for Regional Policy, and Parliamentary Speakers of Parliament.
Source: PP Águilas
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