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Tax: Bank of Italy, Irpef inefficient and unfair

2021-01-11T19:16:52.714Z


In Italy a high levy on assets and work. Ruffini: 'A minimum income exempt from taxation' (ANSA)


 The Irpef "presents several critical issues from the point of view of the efficiency and equity of taxation".

Among these "the trend of the effective marginal rates and the redistributive capacity of the tax".

Giacomo Ricotti of Bankitalia said this at the hearing.

A reform of the personal income tax "will have to contain the irregularities in the trend of marginal rates, also to reduce the disincentives to the labor supply".

"At the same time, it cannot ignore the reorganization of the institutions connected to it (such as social transfers and local additions) to be carried out in an organic and coordinated manner". 

 "Although in recent years various interventions have helped to reduce the level of taxation, Italy, in international comparison, is still characterized by the high incidence of the tax burden on capital and especially on labor", states the Bank of Italy at the hearing in the Chamber.

"Given budgetary constraints, for the same public expenditure, further reductions in the levy on labor could be financed through a higher tax burden on consumption and wealth, considered less damaging to growth".

The actual levy on consumption is in fact lower than in other countries 

    Meanwhile, the director of the revenue agency Ernesto Ruffini, in his hearing in the Finance Committee in the Chamber, recalling the model of the Spanish personal income tax, hypothesizes a "minimum income exempt from taxation and recognized for all families. Variable, however, based on the composition of the same family. It could respond to the need for "simplification and transparency in the calculation of personal income tax" instead of deductions by type of work and family members and family allowances (as well as other measures for children, such as the birth bonus, nursery bonuses, etc.) "

Source: ansa

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