Because the government’s tax debate is just crap
Regarding the personal income tax, it must be pointed out that a debate is taking place that is too focused on form and too little on substance. Here because. The comment by Enrico Zanetti, tax expert and former Deputy Minister of Finance
Regarding the personal income tax, it must be pointed out that a debate is taking place that is too focused on form and too little on substance. In Italy, we already have a continuous rate ranging from 0 to 43% (46% with the municipal and regional surcharges).
One can certainly reason to move from its formulation by means of a limited number of marginal rates and decreasing deductions to its formulation by means of a very high number of marginal rates contained in an algorithm, but the central theme should be: to do what? To lower taxes? And to whom? And by raising them in return for others, or by using which and how many resources?
These are the questions on which the government and the majority must build common and shared answers. Then their technical translation into a continuous rate expressed in German-style algorithmic form rather than expressed with a limited number of marginal rates and decreasing Italian-style deductions is welcome.
Reversing the order of the debate is of little use, unless the goal is precisely to give the impression of changing everything because in substance we are changing little or very little and for very few.
Because nothing prevents you from wearing a German curve that is frighteningly similar, if not identical, to what is currently there. The stones also know that the only truly urgent change for the government is the curve that concerns the holders of income from employees with total income between 28,000 and 40,000 euros who from 1 January 2021 will remain "orphans" of the additional decreasing deduction from 1,200 to zero euro with which in the second half of 2020 the staircase otherwise determined by the 100 euro bonus up to 28,000 euro was made gradual.
Enrico Zanetti, 1st October 2020
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/perche-il-dibattito-del-governo-sul-fisco-e-solo-fuffa/ on Sun, 04 Oct 2020 06:24:26 +0000.