Elections, the taxman in the programs. From flat tax to extra salary


Tax is a central theme in the electoral programs of the parties for the elections of 25 September with the center-right choosing the Flat tax as a flag measure while the other forces are focusing on measures such as the ‘extra salary’ of the PD, the transfer of structural credits of the M5S, the introduction of the ‘exempt minimum’ for the Third Pole, the reform of the property taxes of the Green-Left Alliance.

Center-right

Cutting the tax burden for families, businesses and self-employed workers, flat tax, fiscal peace and cutting the wedge are at the heart of the common tax program agreed by the center-right parties, together with a flat ‘no’ to any form of taxation on assets. Among the main measures in the joint program:

  • TAX PEACE – Abolition of micro taxes, fiscal peace and ‘balance and excerpt’ as well as an agreement between citizens and the tax authorities for the resolution of the previous one;
  • FLAT TAX – Extension of the flat tax for VAT numbers up to € 100,000 in turnover, flat tax on income increases compared to previous years, with the prospect of further expansion for families and businesses:
  • SIMPLIFICATION – Simplification of obligations and rationalization of the complex tax system. Fairer relationship between the tax authorities and taxpayers: simplified procedures, burden of tax proof by the state, reform of tax justice and overcoming the excess of afflictivity of the sanctioning system;
  • SINGLE TAX ACCOUNT – Introduction of the ‘single fiscal account’ for the full and immediate offsetting of credits and debts towards the PA.

In the center-right there are some different nuances on some issues of the tax program. Forza Italia and Lega in particular have released their own tax plan which in some aspects deepens that of the coalition.

Come on Italy

Forza Italia proposes a decisive cut in the tax wedge that goes by 2/3 to increase the net bista pay of workers and 1/3 to reduce the burdens borne by companies. In the flat tax chapter, the Azzurri propose a 23% rate for everyone, families and businesses.

Lega

The League proposes to eliminate all taxes on basic necessities, starting with bread, rice, milk, pasta, fruit and vegetables. As well as premiums on overtime and salary increases.
As for the flat tax, the Northern League aims to extend the current regime by 15% from a turnover of 65 thousand up to 100,000 euros. Then a three-step mechanism would come into operation: incremental flat tax; flat tax for fiscal households (combining the income of the members of the nucleus) with increasing income limits depending on the number of members; up to the extension of the Flat Tax to all natural and legal persons, without income limits.
Among the other proposals of the League, the use of tax credits in payments between individuals; the overcoming of the “reverse charge” mechanism; the abolition of the split payment in commercial transactions between private companies and the public administration; the overcoming of the statistical indicators of fiscal reliability.

Democratic party

Extra salary to fight inflation, fight against tax evasion, IRPEF cut and a sharp ‘no’ to any form of flat tax that would benefit most other incomes. These are the lines of the dem program for the tax authorities:

  • EXTRA SALARY – The central point of the PD program is the so-called ‘extra salary’ technically represented by the progressive introduction of a 1,000 euro deductible on INPS contributions to be paid by employees and similar. The ‘discount’ would be recognized on an invariance basis for the purposes of the pension allowance and would be financed with the recovery of tax evasion already set as an objective by the PNRR by 2024;
  • NO TO FLAT TAX, BETTER SIMPLIFY – No to flat taxes that ‘only benefit the highest incomes and steal resources for welfare’ but a ‘fair and progressive’ system that is ‘drastically simplified’ with the Single Tax Code, the development of digital taxation, the abolition of micro -taxes, and implementing the tax justice reform;
  • MONTHLY PAYMENT – For VAT numbers, self-employed persons and professionals envisaged an option of monthly self-settlement of taxes as an alternative to the balance-advance system;
  • IRPEF DEDUCTION FOR STARTUP – Extension of the 50% personal income tax deduction to all types of start-ups for individuals under 35;
  • FIGHT AGAINST EVASION – Drastically reduce tax evasion: extend the traceability of payments, cross databases, strengthen tax agencies, reward loyal taxpayers more, reform collection;
  • IRPEF CUT AND CONTRIBUTIONS – Reduction of the personal income tax burden, starting from medium and low incomes and a rationalization of tax concessions, transforming those of social value (health care, school expenses, etc.) into direct payments to taxpayers, including the incompetent. Reduced taxation for the second income earner in the family. Zero contributions for the permanent hiring of young people up to 35 years of age.
  • IRAP / IRES IRAP – it must be progressively overcome, guaranteeing the full financing of the needs of the health system and the participation of all incomes in the financing of universal welfare. Reshape IRES in order to reward companies that reinvest profits and those with high ESG ratings.

5 Star Movement

Stabilization of the assignment of credits already used for one of the flagship measures of the Movement such as the Superbonus, fiscal cashback and wedge cut are some of the measures on taxation contained in the ‘On the right side’ program for the elections on 25 September:

  • CASHBACK FISCALE – Introduction of a mechanism that allows the immediate crediting of deductible expenses incurred with electronic means to the current account with the declared aim of simplifying the life of taxpayers and combating tax evasion;
  • STOP IRAP – Definitive cancellation of IRAP for the benefit of all companies;
  • FISCAL WEDGE – Cutting the tax wedge for companies and workers, to more effectively reduce the difference between the cost of the worker for the company and the net income received by the worker himself;
  • TRANSFER OF STRUCTURAL TAX CREDITS – Stabilize the Superbonus credit transfer mechanism with the aim of making liquidity available to households and businesses. Mechanism that can be extended to other facilities to invest at reduced costs in the ecological transition;
  • TAX PAYMENTS – The Movement proposes a maxirateazione of the tax bills to ‘give oxygen’ to taxpayers and businesses also on the collection side.

Third Pole

Among the flag measures of the Third Pole in tax matters, the introduction of the exempt minimum, equal to the income necessary to live alongside a ‘negative taxation’ that helps to achieve it. But also abolition of IRAP and reorganization of VAT:

  • IRPEF REFORM – MINIMUM EXEMPT – Introduction of the minimum exempt as a maxi deduction of the amount essential to survive; Direct reimbursement of all tax expenses; unification of the deduction between dependent and self-employed work; total tax reduction for young people up to 25 years and 50% up to 29 years; negative taxation until the exempt minimum is reached;
  • DEDUCTION OF ONE MONTHLY – De-taxation only for 2022 of a monthly salary of up to 2200 euros that companies may decide to pay to employees;
  • ABOLITION OF IRAP – Completion of the abolition of IRAP also for partnerships, professionals, capital and non-commercial entities;
  • VAT REORDER – Switching to a two-rate system and reordering of goods subject to payment;
  • PRODUCTIVITY AWARDS-FRINGE BENEFITS Reduction of productivity bonuses and increase to 2000 euros in the amount of fringe benefits for employees;
  • SLIDE FOR EXIT FROM FLAT TAX – Two-year slide with subsidized taxation for those who fall under the ordinary flat tax regime having exceeded 65,000 euros in annual revenues. To prevent this from becoming a barrier to growth.

Green-Left Alliance

Fight against tax evasion and avoidance, IRPEF reform with the increase of the exempt quota and the mobile tax rate, tax on assets over 5 million euros and ‘zero tolerance’ for the avoidance of multinationals and tax havens . The main themes of the tax program of the Versi-Sinistra Alliance are:

  • IRPEF REFORM – Combine all sources of income and tax them with a single and progressive tax. Increase to € 1,000 in the share of tax-free income and increasing mobile rate on the German model, which reaches 65% for incomes above € 10 million;
  • REFORM OF TAXES ON BALANCE SHEETS – Abolish the IMU and the stamp duty on investments, to adopt a personal, single and progressive property tax. Increase in taxation on assets exceeding 5 million euros, with a progressive tax that grows up to 2% over 50 million;
  • FIGHT AGAINST TAX EVASION – Promote the use of electronic money, and use databases to cross-reference taxpayers’ data, as well as strengthen electronic invoicing and split payment, especially on online and POS purchases. No to amnesties, increase the resources available to controls, guarantee the certainty of the penalty for crimes of a fiscal nature;
  • MULTINATIONALS AND TAX HAVEN – Zero tolerance for the avoidance of multinationals and tax havens. Public reporting obligation country by country, so as to make transparent where and how much corporations do business. Double the 15% rate set by the G7. Cancel the secret tax agreements entered into by the Italian state with foreign multinationals.
  • TAX ON EXTRA PROFITS – 100% taxation of the extra profits of the energy giants. To be returned to male and female workers with an extraordinary donation of 1,200 euros per family.

Source: RSS DiariodelWeb.it Economia by www.diariodelweb.it.

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