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http://www.asuntoscapitales.com
The VAT increase supposes an increase of prices that can reduce the
consumption in itself. In addition, an increase in IRPF makes the
disposable income of taxpayers lower.
"The debate that now faces the Central Government with the
governors and mayors on the amount of the resources of the General
System of Participations (SGP), which are part of the revenue of the
Nation corresponding to the territorial entities (misnamed transfers"
)…
"The sad reality is that with the necessary decentralization increased
corruption in the regions, the diversion of resources to purposes
other than those established in the law and the use of them for the
benefit of particular interests. The reform of the GSP should
therefore include concrete proposals on the reform of control bodies
in the regions. "
http://www.portafolio.co/economia/finanzas/descentralizacion-transferencias-321090
https://www.gedesco.es/blog/por-que-subiendo-impuestos-el-estado-no-consigue-recaudar-mas/
• Even when you think that a tax hike can
cause bigger earnings for the state and then
decrease the surplus, that hike could affect
significantly the basis of society's finances,
and then generate a retrogression in the
country's economy, decreasing consumption
and hence a rise in prices.
• A reduction in public spending could eliminate
the budget imbalance without resorting to tax
increases