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DOES GENTILONI WANT TO TAKE THE HOUSES OF THE ITALIANS? THE COMMISSION HAS BEEN SAYING THAT FOR YEARS …

In recent days, the response to a parliamentary question by Silvia Sardone in which Commissioner Gentiloni, known as "La Moviola" for the speed of thought, admitted that the Commission wanted to force Italy to re-establish the IMU has caused a certain uproar in the newspapers on the first house, a measure hated by all families, by all Italians, and which has no logical or economic justification. Let's see what Gentiloni replies:

The Commission Staff Working Document “Country Report for Italy 2020” includes an analysis of the Italian tax system. Overall, the main problems identified by the Commission are the high tax burden on labor and the high level of tax evasion. The analysis shows that abolishing the IMU exemption on the main residence (with varying degrees of progressivity) and using the additional income to reduce taxation on labor would provide more incentives to work, resulting in positive repercussions on economic growth.

Therefore, according to Gentiloni's answer, taxation from labor to unproductive income capital (because the first house does not even potentially produce income, rather it is a cost) would improve growth. To understand that it is an enormous banality, a nonsense born of not knowing the economy in general and the Italian tax system in particular, just point out that:

a) at the macroeconomic level the effect would be ridiculous. The total revenue, hence the pressure on the system, would not vary. The total revenue of the IMU prima casa would not exceed 4-5 billion. Counting the income reductions of which even Gentiloni speaks would be a couple of billion of load transfer from labor to capital. A frankly ridiculous figure for having macroeconomic effects;

b) the Union, whether negligently or maliciously, does not calculate the further depressive effect on real estate values ​​of an additional tax on assets. A destruction of wealth and accumulated capital that affects both the ability to obtain credit, even for productive activities, and the possibility of repaying any mortgage loans.

The request of the Commission is so superficial and senseless that it frankly appears stupid and inclined only towards evil. In addition, it would heavily strike above all the "Left ZTL", ie the electoral base of the PD, for which it is also politically self-destructive. Yet it is consistent with a senseless policy that has been going on for some time. The response of “Moviola” Gentiloni is everything, except unexpected, indeed the Commissioner comes very last on the subject.

In 2019, in the classic letter of recommendations that the Commission sends to Italy and which MUST BE FOLLOWED to obtain the famous Recovery Fund, it was written :

The recurring property tax on first residences was repealed in 2015, even for the richest families. Furthermore, land and property values ​​(or "cadastral" values), which serve as the basis for calculating property tax, are largely obsolete and a reform to align them with current market values ​​is still pending.

So that of destroying the Italian real estate market is an inherent desire in the Commission, which requires a revision of the cadastral alues ​​without realizing that these values, in other areas of Italy, are higher than market values ​​and in other parts they are more or less aligned and updated. As always, the Commission has a caricatured vision of a country, it does not know it, it goes by clichés, and this is very serious when one pretends to give binding indications.

We remind the supporters of the Recovery Plan, those who think of relaunching Italy with this tool that, the indications of the Commission contained in the "Country report" periods, will become MANDATORY IN THE APPLICATION, so the IMU on the first home MUST be reintroduced , if you want the Recovery Fund. Politically Conte will apply yet another restrictive mini-maneuver hitting the pockets of citizens, a politically devastating move. But what is the matter of politics when everything is delegated to Germany?


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The article GENTILONI WANT TO TAKE THE HOUSES OF THE ITALIANS? THE COMMISSION HAS BEEN SAYING THAT FOR YEARS… it comes from ScenariEconomici.it .


This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/gentiloni-vuole-prendersi-le-case-degli-italiani-la-commissione-lo-dice-da-anni/ on Sun, 18 Oct 2020 08:28:15 +0000.