Maneuver, single child allowance and stable cut of the tax wedge



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Maneuver, single child allowance and stable cut of the tax wedge

Cutting the tax wedge structural up to an income of at least 40 thousand euros, single check by and sons and transition to taxes cash for me Free-lancers, as proposed by the director ofRevenue agency Ruffini. There are three open tax files in view of the Budget Law that the government must end in mid-October, and that this year will be of special relevance because it will have to accompany and implement -as the European Commission has also requested- the Recovery plan of our country. As the Minister of Economy himself reiterated Gualtieri, the rate reduction cannot be financed directly by European funds, which, being by definition temporary, if used in this way would create the conditions for a subsequent rate increase. Instead, resources arriving from Brussels can be used to help modernize the tax machinery (for example, with incentives for the transition to digital payments) thus opening spaces for recovery from tax evasion.

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Costs

Therefore, the additional resources will have to be found within the budget itself and the government intends to cut them at least in part from other revenue items: by reorganizing deductions and deductions (always promised and never implemented) and also by reviewing subsidies. current environmental conditions. . The latter, however, is a very delicate chapter that is studied with great caution because if, on the one hand, it complies with European recommendations – which suggest shifting the tax from people to things and therefore increasing indirect taxation – in fact, it would run the risk of being translated into very unpopular measures, such as the rise in the price of diesel (diesel has a lower excise duty than gasoline).

When it comes to reducing taxes in the strict sense, the government’s options are quite restricted. The cut in the tax wedge for employees that came into effect in July leaves an income of between 28,000 and 40,000 euros per year only valid for six months. Eliminating it would have paradoxical effects for those taxpayers and, therefore, it must be made structural: either by confirming it at least momentarily in its already approved version or absorbing it in a more general revision of the income tax curve. But that may take longer. We look at the German model with a “continuous” rate but a reduction in the number of parentheses is not excluded.
Closely related to the revision of personal income tax is the introduction of the single allowance for families, which would be financed (in part) with the cancellation of current deductions for family expenses. We work with a basic amount of 200 euros per child per month, which can be graduated according to the Isee parameter (which measures the wealth of families in addition to income). A fixed point is to guarantee all families the possibility of maintaining current benefits, if they are more substantial: in short, avoiding that someone could lose us. Also for this reason, the application of the reform (already outlined in the enabling law approved in the Chamber) requires several additional billions, which must be identified with the maneuver: the hypothesis of resorting perhaps indirectly and provisionally to the European resources.

The stages

And a cost problem also arises for the third file, which arises from Ernesto Maria Ruffini’s proposal: VAT numbers must go from the current system based on advances and balances to monthly (or quarterly) payments linked to a criterion of box. . On paper, a simpler and even more realistic mechanism than the current one, which, however, must be carefully studied to ensure that it also translates into a reduction in the rate. Therefore, this step may require more research, also to allow the necessary comparison with the interested categories.

Finally, along with these interventions, the government is also aiming for a simplification of fiscal rules that have been stratified over the decades and would focus on a limited number of “single texts.”

Last update: 00:51


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