La tax reform will be the heart of budget law 2021, which should see the light by mid-October. The most awaited interventions are those on thePersonal income tax, but there is no money for a complete overhaul of the tax: at most, it will be introduced a new intermediate rate between 27% and 38%, probably 33%, so as to soften the heavier shot for the middle class.
The problem is that the tax reform, as well as the entire maneuver, will have to be at zero balance. The three anti-Covid measures launched by the government (Care Italian, Bid, and August decree) have already pushed the 2020 deficit to 12%, while the debt is now traveling towards 160% of GDP. Impossible to go further.
This is why it is topical again the cutting of tax expenditures, the babel of concessions, bonuses and incentives that governments have stratified over the years to flatter voters, industrialists and lobbies.
“Ours is not a tax system: it is a jungle that is impossible for anyone to understand, completely uncontrollable – he explains Ernesto Maria Ruffini, director of the Revenue Agency, in an interview with Republic – And this is because over the years the Finance laws have literally shattered it, creating absurd fragmentations. Now the building needs to be redone, and it's an opportunity not to be missed”.
The review of the deductions and deductions system is a great classic of the budget sessions: we always talk about it but never do it, because the operation would be seen by voters as a tax increase and would provide the opposition with a weapon to bomb the majority.
This time it could be the right time, because the money is lacking and there is no other way to intervene on the personal income tax. According to the calculations of the Commission for the preparation of the annual report on tax expenditures, chaired by Mauro Marè, le tax expenditures there are a total of 533 and they are worth 62,5 billion euros. From their reordering could be obtained up to 10 billion, thus financing approx half of the 2021 maneuver, which should be worth a total of 20-25 billion. The missing dimension should be found with spending cuts.
In addition to the tax reform, the maneuver will have to contain confirmation of the 100 euro bonus in the employee paycheck (the former Renzi bonus of 80 euros, which has been increased and extended). It costs 6 billion.
Then there is the idea of creating a new universal child allowance from the seventh month of pregnancy to 21 years: 22-23 billion are needed, of which 15,5 will come from the reorganization of eight existing measures (from the family allowance to the mother bonus). It means that another 6-7 billion are missing.
Then the to-do list includes renewing theecobonus, the financing of non-deferable expenses such as overseas military missions (2-3 billion), the renewal of the civil servant contract, ordinary health fund and the increase of fourteenth for pensioners, which will be demanded by the trade unions.
In 2021, for the first time after 10 years, we will not be forced to find tens of billions to sterilize the VAT safeguard clauses, which were definitively canceled at the beginning of the Covid emergency. A significant reduction, but still insufficient to solve the hedging puzzle, given that the deficit is now untouchable. Unless a new health emergency explodes in the autumn.
I'm fine with 33% personal income tax, but up to 30.000/40.000 it must be 0 or tax-free.
So the average citizen will always pay, a rate between 27 and 38 but what the fuck is it for? The usual thieves who no longer know where to go, whoever pays will always and only be the people, a rate of 27% is already high for a single-income family, instead of facilitating the middle/poor class we always and only who earns 50 60k a year. You should be ashamed.
Before, with the 27/38 rates, the gap between the two brackets was wider, now we will pay earlier and more always on the back of the middle class
What will a person with a gross income of 18.000 euros earn?
If they remove the tacs and expenditures to facilitate those who already earn a lot and impoverish the poor, in my opinion this government won't last long even if choosing between the right and the left means you want to end up in the pan or in the embers?