(Finance) – “The flat tax determines effects redistributive that penalize subjects with incomes medium and favor those with higher incomes, unless one decides to forgo a large share of revenue“. To detect it is theParliamentary Budget Office in a brief on the bill”Government mandate for tax reform” that the president Lilia Cavalry forwarded to the House Finance Committee.
“There incremental flat tax and its extension to workers employees goes against the trend of the objective of increasing thehorizontal equity“, reads the document and “it appears hardly justifiable even from the point of view of efficiency, given that the reduced rate is not applied only to sums whose perception is actually linked to increases in productivity, quality and innovation. An example is represented by increases in employee compensation which are essentially determined by you renew contractual“.
For the PBO, the tax delegation being examined by Parliament “announces broadly shared priority objectives“. Among these objectives “to stimulate growth through greater efficiency of the structure of taxes and a reduction of tax burden; reduce theevasion and thetax avoidanceespecially through effective use of available data and changes to assessment and collection procedures; rationalize And simplify the tax system, also by eliminating micro-tributes; review taxpayers’ declaration and payment obligations; reorganize the provisions that regulate the tax system, through the drafting of consolidated texts”.
However, the design of the tax reform “must be compatible with the resources which will become available without jeopardizing the solidity of the accounts public“. The PBO noted in particular that “financing the delegation with recourse to net borrowing” would have negative consequences on the balance of public finances and their sustainability in the medium-long term”. The resources, he continues, “should be found in the recomposition of the tax burden between taxes, in the fight against evasion and in the reduction of expenditure” while “the reduction of tax evasion can be used as a cover only after three years if it is permanent”.
“Despite the breadth of the interventions proposed” the tax delegation “overlooks some critical issues of our tax system” and “in particular, it does not intervene on the taxation of real estate, both of income That patrimonialbased on obsolete cadastral income that does not match the actual characteristics of the buildings and their market value”. According to the PBO “this leads to forms of erosion of tax bases of taxes, determines revenues lower than those potentially obtainable – both at central and local level – and unfairness of the taxation system”.