Fedea asks that the new banking and energy taxes only tax extraordinary benefits
The Foundation for Applied Economics Studies (Fedea) has warned that the new temporary taxes on energy and financial entities “distort the efficient allocation of resourcesaltering the exchange relations of the companies with the clients”, since the impossible base is not the extraordinary profits of the companies, but the sales (energy) or the ordinary margins (banking). The professors Julio Lopez Laborda Y Vincent Salas They propose that the tax base of the taxes coincide with the extraordinary profits of the companies, including a deduction for the opportunity cost of equity.
This is clear from the analysis carried out on the temporary levies on energy and financial entities that are being debated in the Congress of Deputies. According to the report, the theoretical objective of these taxes is to make tax the profits “fallen from heaven” that companies in the energy and financial sectors are obtaining in the current inflationary context to allocate their collection to reinforce the so-called “rent agreement “.
However, as the authors of the note point out, the tax base of the projected taxes is not the extraordinary profits of the companies, but sales (in the energy tax) or ordinary margins (in the financial one), which distorts the efficient allocation of resources. For this reason, they propose that the tax base of the taxes coincide with the extraordinary profits of the companies.
This design of the tax base ensures, according to the authors, that the taxes are not distorting and that they will not be transferred to the clients, being borne by the shareholders of the affected companies, without it being necessary to establish in the regulations a prohibition of impact that can be difficult to implement.
Extend the tax to all companies and sectors
Since extraordinary profits can occur in any company and sector of activity, the authors propose extending the tax to all companies and sectors of the economy. The design proposed in this analysis would guarantee the taxation of each company in proportion to the extraordinary profits obtained by the same in each tax period, as defended by its authors. “With this, the risk that this tax could be declared unconstitutional, as discriminatory, would also be eliminated,” they have assured.
Finally, the extraordinary profit proposed as tax base, now as part of a temporary lien, could be the starting point for a structural reform of Corporate Taxas already contemplated in the recent ‘White Paper on tax reform’.
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