The Tax on Capital Transfers and Documented Legal Acts and the political cycle: economic incidence from a double perspective

Abstract

The Tax on Capital Transfers and Documented Legal Acts (TCTDLA) is a Spanish type of wealth tax. Its tax income is transferred to the Autonomous Communities, which have the regulatory capacity to modify the basic determinants of the taxpayer's tax debt. In this work, a comparison is made of the TCTDLA regulations (specifically its tax credits and tax rates) in each Autonomous Community with the aim of analysing their evolution during the pre-electoral and post-electoral periods, taking into account the political configuration of each Autonomous Parliament. Likewise, its economic impact is analyzed from the taxable person perspective and also from the active subject one. That is to say, its budgetary impact in each Autonomous Community is analyzed, as well as its incidence on taxpayers' tax debt, according to their tax domicile, in order to demonstrate the territorial inequalities that can generate said tax and the possible tax competition between Communities, depending on the political cycle.