The “new” tax: from wedge to corporate rate, what will change?

Flat tax the first moves already in the budget law

(Finance) – Sulla reform of the Tax Office “for me the absolute prioritythe one that doesn’t cost but really gives great benefits to Italians, is the topic of the proceedings. Today we know that tax evasion since the 1980s has fluctuated between 75 and 100 billion euros. Everyone who came by said “let’s fight tax evasion”, but unfortunately we never succeeded, because apart from the tax burden, which is certainly important, we have such a rigid system, think about sanctions, to everything that happens due to the litigation” that turns out to be ineffective. I say that we need to change strategy”. This was stated by the Deputy Minister of Economy, Maurizio Leo during a debate at the Italia Viva party underlining that “today the tax authorities are able to know millimetrically what the taxpayer has as income. And today the fight against tax evasion it must be done with technology.”

“At the end of the month we will already be able to prepare this text, which we will entrust to Parliament and Parliament will reason with us. We can bring this into force on January 1, 2024, everything else, everything that is taxes, it is clear that we have to find the resources and we do not find them in the cylinder. Then we have to make choices, about young people, about the family, about the birth rate. We will see how to recover the resources”, continued Leo.

If you intervene on the tax wedge we also need to raise the threshold of the former tax rate for medium-low income groups, otherwise part of the money that comes from the wedge is removed from the higher rate, Leo continued, explaining that “the intervention on the tax wedge” must be done and is the government’s priority, but if I am giving more money in the pocket of the employee and then part of that money is eaten up by the tax burden after the first rate, because 23% stops at 15,000 euros and then grows, so I have to try to raise the medium-low brackets higher on the first income bracket. Otherwise – he reiterated – what I give him in part I take back in the form of taxation”. Leo recognized that it is “a difficult and complex operation”.

That in Italy taxes are high”it is an objective fact. We need to get into the mindset of lowering taxes.” And looking at productivity, according to the government this means gradually lowering the rate to 15% for companies that invest or hire. “We said in the enabling law that rates must be lowered for businesses, today they pay around 24%, we have to gradually reach 15%. In two cases: to companies that make investments or those that hire”he concluded.

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