The government’s latest move: a German-driven IRPEF


The watchwords are: less taxes and progressivity. The Minister of Economy, Roberto Gualtieri, study the moves for a lighter and more human tax. In the pipeline there is the reform of thepersonal income tax. It should arrive by April. Within that time, the government should produce the delegation law with the identikit of the new tax on personal income.

Several proposals from the parties on the table: from the integral reform hypothesized by Italia Viva, to the three aliquot model of the 5 star movement. But in the cauldron the German model seems to find room for continuous progress. On this point Leu has already spent publicly, but the Pd also likes the idea. On such a complex issue, the executive must necessarily rely on the results of the technical analyzes on the possible effects of the various interventions. And on the German model, the first timely proposal comes from the Astrid working group on taxation. He writes it the sun 24 hours.

The analysis conducted by Ernesto Longobardi, Corrado Pollastri and Alberto Zanardi starts from the current situation. Takes into account the latest intervention on tax wedge and offers a possible way for the new German income tax. With a function that, applied to gross income, calculates the tax directly, canceling the deductions related to the various types of income. Here are the objectives: a simpler income tax. Easier for the taxpayer to read who would know the effective rate applied to each income based on the formula. It is specularly easier to manage for governments that could assess the distributional impact of any possible change without too many uncertainties.

But here’s how this is made up personal income tax German-style. The new model would provide for continuous correspondence that associates a percentage to each level of income to be applied to derive the tax. Without exceeding the current maximum marginal rate, 43%. Deleting the deductions by income type, the Irpef curves would be three. Differentiated for employees, retirees and self-employed. To take into account the various income production costs (gross for employees, analytically determined for the self-employed and absent for retirees) which are today managed with deductions.

Astrid proposes a devised adjustment to make it regular without penalizing taxpayers in regime change. It would allow to offer an average advantage from 382 euros to almost 10 of the 13.7 million Italians with prevailing income from employment. And from 284 euros to 9.6 of the 13.2 million pensioners. Cost: 3.7 billion for employees and 2.7 billion for retirees. A similar effect would also be obtained for the self-employed.

The new system would send the current one, that of the echelons, into the attic. This is a much more attractive tax also on the political level. Because for almost 60% of employees, those who declare up to 23,500 euros, the real rate would for example be lower than the 15% required by the Flat Tax theorized by the center.

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