The tax reform that was on the government table before the coronavirus epidemic broke out returns to the top of the executive’s agenda, even as one of the points of the “supporting structure of the recovery plan”Internal, explained Prime Minister Giuseppe Conte this morning. Because now given that public finances are already severely tested by post-Covid recession and extradeficit that will bring debt, according to the forecasts of the Def, at 152.7% in 2021?
“Because it is a strong anti-cyclical public finance policy that aims to open up economic spaces at a time when, like this, it is necessary to restart the economy. There are two levers: on the one hand generating an increase in GDP through the investments that we will try to stimulate with the next decree (Simplifications, ed). On the other hand, to create a strong expansionary effect by reducing taxes. Like M5S, in recent days we have reiterated the need to start from here, a principle shared in the majority “.
Deputy Minister of Economy Laura Castelli
Therefore, tax exemption. What are the guidelines for work?
“Meanwhile, a job of simplifying the deductions, often ostracized in the past. There’s a mare magnum of deductions that water down the progressiveness of taxation. Simplifying also means allowing the citizen to know almost immediately how much his tax burden is and where it ends up in the state coffers, in relation to the purpose of the withdrawal. This would also reconstruct a virtuous circuit, in which the taxpayer would no longer see the state as a coercive entity that does not return anything, but rather manages to keep a circular economy in the functioning of public finance. Next to the simplification of the deductions, then there is a process of identifying the types of taxpayers “.
And that is?
“Today we still have the self-employed inside the personal income tax. An unfair system. We must ask ourselves how, given that Italy, like other countries in Europe, has chosen the flat-rate regime and the flat tax. There is an increasing need not to equate the income of individuals with that of the self-employed. Over the years, some countries have divided taxpayers evenly thinking about methods ad hoc because the characteristics of the subjects are different. Then there is another very important issue also because the recovery of progressivity through a family policy is decisive in the politics of the majority. ”
The Prime Minister Giuseppe Conte
“Today a great deal of taxation depends on the family status and I think of the deductions, but also a whole series of external concessions to the deductions. This will be the subject of a delegated law on the plan called ‘Family Act ‘ who in the next few days will go to the Council of Ministers and which provides the way for the creation of the single check. The goal is to build a unique tool in which to bring together existing resources with an addition to be recovered from the European funding that will arrive, a measure that then also becomes a system of progressive taxation. A system that is missing today, dispersed in a thousand streams between checks and various bonuses often difficult to activate such as that on nursery schools or for the first child and which instead merged and with fresh resources would field one policy ad hoc for the family capable of stimulating a certain type of economy. Tools that have worked well in France and Germany and on which we are a little behind. It can no longer happen that the citizen gives up his right for misunderstanding with respect to the tools available ”.
Economy Minister Roberto Gualtieri
In the end, how much could the single check be for families?
“We are evaluating it, because it is a DDL Delegation that will be presented by Minister Bonetti, with whom we are working. The figure must be as congruous as possible. It is a type of work that must go hand in hand with an overall tax reform” .
Reorganization of deductions, redesign of family policies and then what?
“Finally, there is also a theme concerning consumption. In redesigning the tax policy of direct taxes, it is also necessary to imagine what weight we want to give to consumption-related taxation which impacts on national production, on Made in Italy, on the theme of the green economy that Brussels is using to address the resources of the European budget. Next to this, in view of the Simplification decree that we are building, there is a very important job on which I am concentrating as the holder of the delegation on the Revenue Agency “.
“It is the theme of the single compilation texts, that is, being able to collect and reorder the existing rules, eliminating the useless or redundant ones that should instead have as their object the phases of the tax procedures. Clean up the regulatory body, creating a single taxpayer text also to shift the perspective from the central state to the protection of the taxpayer. Finally, there is a very important work concerning the digital part. Since I am at the mef, I have always paid close attention to ensuring that every process is digitizable. We must continue the process of unification of databases, an aspect that I am dealing with the Minister of Public Administration Dadone and which serves, for example, to distribute contributions to companies more quickly or to liquidate tax credits to citizens who accrue them and then also to define the position of the taxpayer, as started doing with the portal PagoPA“.
How will the income tax reform be structured: how many brackets and with what rates? And the no tax area?
“On no tax area there is an important issue of incompetence that needs to be addressed and brought to light, a theme that does not allow us to work well on a segment of the less wealthy population which, being precisely ‘incompetent’, cannot deduct anything and therefore lose the opportunity to benefit from the measures built on the deduction. We are thinking about creating tools dedicated to the weak sections of the population, which overcome the problem of incompetence. ”
Economic Development Minister Stefano Patuanelli
And on the brackets?
“We had come to reasoning. Nobody in the majority was in love with their idea. The brackets are not as important as the effective reduction of taxation. In the end, by pulling the line, how much will taxpayers pay? And then there is the theme of Irap which with the Revival decree we removed for the June installment. An important signal. Personally, I think it should be canceled altogether because it is an anti-historical tax. ”
Fund the health system, though …
“Sure, it’s important but you have to think about how it’s built. It is one of the most hated taxes. In the past, we have proposed to make IRAP an additional IRES, perhaps changing the logic of it. At a time like this, the country’s relaunch cannot help but cut taxes. Today there is no excuse for not doing it. It is no longer possible to wait ”.
All the May tax deadlines have been postponed between the end of June and September, will there be other extensions?
“This is a crisis that has taught us to take it one step at a time, especially from an economic point of view and that goes hand in hand with the drop in the number of infections. This choice will also be made step by step. It will be necessary to verify first how much the measures put in place will respond to the needs of the economic sectors, given that there will be some sectors that will need the greatest intervention. The Recovery Fund European will have to finance part of the tax cut. ”
The President of the EU Commission Ursula Von der Leyen
According to some rumors, you want to allocate 10% of what will be for Italy to reduce the tax burden, therefore about 10 billion …
“We are trying to sensitize the European countries with which there is an excellent dialogue, which has changed in recent times, with the awareness that anti-cyclical policies that underlie the constitution of the EU are needed as never before”.
What will be the venue for this organic tax intervention? The next Budget Law?
“Yes it is a useful moment, it will depend on what will happen in the coming months. It should be done as soon as possible. We hope that the European dialogue will also lead to rethinking tax competition or the tax system web tax which is not yet closed within the community “.
The next Simplifications decree aims to reactivate public and private investment. What will it consist of?
“The last government passed the two decrees Growth is Unlock-Yards who have completed an excellent job thanks to the Cipe which has unlocked over 50 billion within a year and a half. Now, the procedures need to be further streamlined. We are talking about Genoa model which is the way in which some strategic works such as trains, highways and the water network could be managed, particularly important in the period of Covid. On the latter there are 6.5 billion unlocked but subject to overlapping skills problems between municipalities, regions and consortia. Authorization and management simplification work must be done. Finally, there are the 110 billion between RFI and Anas, firm resources in the state budget already financed by public debt, to be grounded. They are construction sites from which the relaunch passes. So the Genoa model on which all the majority agree and in which an important infrastructure has been rebuilt in a short time, will be the cornerstone of our action “.
It will be a kind of white semester anti-bureaucracy?
“No, we think it is a modus operandi that must go to the system”.
Will the procurement code be suspended?
“It is a complicated issue that will have to find a balance. In the proposal of the Deputy Minister of Infrastructures Cancelleri is not expected and so tout court there is no proposal from the majority where a summary will be found. ”
Sunday in a post up Facebook, has announced that it intends to “continue also in the work of ‘cleaning up’ the state budget, started in 2018 with the excerpt of the folders, under 1,000 euros, which would never have been collected”. What will we see in force from this action?
“We are working with the Revenue Agency because it is stock debt with more than 10 years of life is written off at least in part, which moreover should be done automatically. We are talking about deceased people and bankrupt companies that will never pay again. ”
Are you also thinking about another scrapping of folders? “
We are doing some accounts: certainly simplifying that big one stock that for a part it is no longer possible to cash in will bring results in the short term “.
In Simplifications decree the reform of the legal system for capital companies will also be included, such as the introduction of the multiple vote, which resulted in Cesarini area from Revival decree?
“Yes, it is a matter we are continuing to work on”.
Tourism e automotive they are sectors that have suffered a lot and that tourism apart from the 2.4 billion bonus of the relaunch decree, but the operators speak of “minimal impact”, they have remained out of government aid. You will intervene with recovery plans ad hoc?
“Yes, tourism, related industries and also catering. Realistically, another 20 billion will be needed to help these sectors too, which together with the Municipalities will take a little longer to recover. ”
And for theautomotive?
“Also, the Minister for Economic Development Stefano Patuanelli is dealing with it. The problem is the domino effect that has been on the armature, a asset strategic for the country “.
Municipalities of Metropolitan cities they wrote to the prime minister for more resources. What do you expect?
“They are cities that have felt the impact of the crisis, due to the concentration of businesses and the decline in tourism. We will also intervene here with ad hoc measures to increase the resources available to these Municipalities. There is already a 3.5 billion fund that on local authorities plans to allocate 30% of resources immediately and another 70% by July after constant monitoring of the situation. In case of need, we will implement the fund to help Municipalities close their budgets in July “.
The European Commission has finally presented its proposal for Recovery Fund, a 750 billion instrument, 500 of which are non-repayable and 250 loans. Does it satisfy you?
“At first glance it seems to me that the needs of Italy have been perceived, a country that had asked for an important part of grants.”