A hidden patrimonial behind the land registry reform
This bill, presented by 5 stars, provides one annuity review based on square meters and location of buildings, but not only.
The bill splits left and right, with the Bank of Italy in the background, which proposes to move the tax burden from work to real estate but more generally to increase the tax burden on consumption and wealth.
In practice, we are moving towards a further increase in VAT. The government, to assess the overall picture, asked the Bank of Italy for an opinion. What is certain is that with the government crisis in the background and unlikely but possible elections, everything could see a strong slowdown.
The goal, on paper, would be to hit the great wealth to address the emergency caused by the pandemic but also to level economic inequalities.
Ricotti of the Bank of Italy argues that in this way it will be possible lighten the tax burden on labor (hence the personal income tax), in which Italy holds a sad first place in Europe, considered a real ballast for a real recovery, shifting taxation on wealth and actual consumption of Italians.
At the same time, however, there are gods risks as Ricotti himself points out, warning the government about the risk of possible transfers abroad of the mobile components of wealth in the face of a redistribution of growth, more productive use of resources and less serious damage to growth.
In other words, the land registry reform, filed about 5 years ago, provides for a reclassification of properties which would then be taxed according to square meters e no longer for the rooms. The intention of the 5 stars would be the leveling of the contributions of individual citizens without affecting the tax revenue of the State, which is around 41 million euros.
From a theoretical point of view, this kind of taxation undoubtedly has advantages. In fact, wealth is distributed in a much more unequal way than income, but also because income has less effect on growth.
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