After a long silence, Luigi Di Maio takes a stand on Flat tax. Usually the grillino political leader avoids overreacting on the measure dearest to the League (and more slippery for the majority), but this time he even goes so far as to set limits. Thursday morning, on the microphones of Radio Anch'io, the political leader of the 5 Stars assures that the flat tax at the studio "it will not be socially unfair”, because the Government “will put a roof: lifelong tax payers need help, but you don't go beyond 60-70 thousand euros of income”. In this way, it is reasoned, the greatest tax benefits would be for the middle class.
Unfortunately, Di Maio overlooks some fundamental details, such as the rates to be imposed below and above the income limit and the possible strengthening of the system of deductions and deductions for those who earn less. In recent months, the Northern League spoke of a two-rate scheme: 15% on incomes up to 80 thousand euros and 20% on higher ones.
Certainly, the income threshold mentioned by the deputy premier grillino, although lower than that desired by the Carroccio, it is not enough to guarantee the progressiveness of the tax. To date, four of the five personal income tax brackets fall within the limit of 75 thousand euros: placing the flat tax threshold at 60-70 thousand euros would therefore mean flattening almost all rates to a single percentage, benefiting taxpayers from the upper-middle class, not the middle class.
According to the numbers released last March by the Ministry of EconomyIn fact, in Italy the average income is 20.670 euros and only five taxpayers out of 100 declare more than 50 thousand euros (paying almost 40% of the total income tax). It is therefore contradictory to speak of a "ceiling of 60-70 thousand euros" and at the same time to argue that the flat tax is designed for the middle class.
The other big problem is about costs to the state. According to League calculations, the flat tax would cost a dozen billion (to be added in the autumn maneuver to the 23 billion for VAT). Matteo Salvini would not hesitate to finance the measure in deficit, but on this point meets the resistance of the Minister of the Treasury, Giovanni Tria, and the Prime Minister, Giuseppe Conte, concerned by the infringement procedure that the EU is about to open against Italy. At the moment, this is precisely the warmest front in the majority.
The disagreement on the flat tax is the most probable pretext for a possible summer government crisis. Di Maio knows this well and, in order not to remain with the breakup match in hand, avoids putting pressure on the ally: "The goal as a government is to respect the commitment with the Italians and lower taxes: the covers will be the subject of discussion between now and December”. And again, increasingly accommodating: “Tria did not say that the flat tax cannot be implemented. Eri's summit was the beginning of a process towards a budget law that does not want to create sensational tensions with the European Union. We necessarily need to reduce the tax burden on Italians to reduce public debt and promote growth". The same words used by Salvini.
