a race to those who promise more. Detailed proposals when it comes to explaining who and how will pay the least taxes. Completely absent or smoky when it would be necessary to explain the costs of the individual measures and, above all, how it is intended to finance them. In short, there is no answer to the question who pays? for the astonishing electoral promises in the fiscal field. This is the main problem that is found in the programs that the various parties or alignments have already presented or are preparing in view of the vote on 25 September. It is interesting to note how some directions emerge transversely: from the measures to encourage the hiring of young people and women to the cut in the levy on work – a sign that it is considered by all to be too high – even if the center-right seems to favor self-employed and VAT numbers (flat tax) , in the sense that it would start from them, while the center left employees (tax wedge).
The center-right flat tax
The flat tax, or a single tax rate, at the heart of the center-right’s tax proposals. Until a few days ago, every political force expressed it in a different way. Then in the joint program signed by the Brothers of Italy, Lega, Forza Italia and Noi moderati, an agreement was reached, necessarily more generic. It is proposed that on the flat tax current (15% for VAT numbers with revenues up to 65 thousand euros) the ceiling rises to 100 thousand euros. Furthermore, we speak of an incremental flat tax: that is, the application of the flat tax on the increase in income compared to previous years, with the prospect of further expansion for families and businesses. For example, if you declare 50 thousand euros compared to the 40 thousand previously declared, on the 10 thousand euros you would pay not the normal personal income tax (35% in this case) but the flat tax. This reform would apply, in perspective, to all taxpayers. The gradual introduction of the family quotient is also envisaged.
The other proposals are: a new balance and excerpt on the tax bills; measures for companies in the name of who more hires, less pays; single fiscal account to offset credits and debts for the Public Administration; VAT cut on energy goods, basic necessities and for children; tax reduction of corporate welfare; tax reduction on the hiring of women, young people and the disabled; safeguarding existing situations on building bonuses.
The wedge of the center left
In the center left, to date, there is no common program. The Democratic Party focuses on cutting the income tax on medium-low income. Central is the proposal to increase net salaries up to one month more, with the introduction of a deductible of one thousand euros on INPS contributions to be paid by workers (without consequences on the pension). A subsidized taxation is also proposed for the second income earner in the family, to facilitate female work. For young people: total decontribution of permanent hiring of under 35s and a dowry of 10 thousand euros, at the age of 18 and on the basis of the Isee, for expenses related to home, education and the start of a work activity. The dowry will be financed with the increase in the tax on inheritance and donations over 5 million euros. For businesses, it is proposed to overcome IRAP and remodeling IRES.
For artisans, SMEs and professionals, monthly self-settlement of taxes is thought of instead of the balance-deposit. On the green tax side: review and stabilization of incentives for energy and seismic regeneration of buildings and extension of the Transition 4.0 plan to green investments; the introduction of a tax bonus for companies with a high ESG rating (environmental, social and governance); there progressive reduction of subsidies harmful to the environment. On the front of the fight against tax evasion: enhancement of the traceability of payments.
The tax reduction of the center
Action by Carlo Calenda and Italia viva by Matteo Renzi have announced that they will present their joint program on Thursday. On the tax side, the starting positions are very close. Action proposes to shift taxation from work to digital transactions, cutting IRAP and IRPEF on medium-low income by 2 points of GDP (36 billion). In addition, young people up to 25 years old should pay zero taxes and those between 26 and 30 half taxes, according to Calenda’s party. Which also proposes the strengthening of the single allowance for dependent children, wanted by the minister Elena Bonetti of Italy alive. Renzi’s party also wants to overcome the IRAP for businesses, as foreseen by the draft law for the tax reform of which Luigi Marattin, economist of living Italy, is the rapporteur. Among the proposals also the abatement of IRES for the first 5 years for the merging companies, so as to incentivize their growth.
The Italia viva program is completed by: the VAT reform on two rates plus an exemption band for basic necessities; the revision of the personal income tax on three rates with a maxi-deduction decreasing as income increases and the possibility of paying the same tax with the mobile phone, to have an increasingly digitalized taxman. To finance the reforms, Italia viva proposes, among other things, to eliminate the citizenship income for those able to work.
The cashback of the 5 Stars
Superbonus e cashback they are the two fiscal creatures of the 5 Stars in this legislature, which what remains of the Movement, now led by Giuseppe Conte, wants to strengthen in the next one.The Superbonus offers a 110% discount on energy efficiency and seismic safety of buildings. The tax discount, according to current regulations, is up to 31 December 2022 for interventions carried out by individuals on single-family buildings, provided that at 30 September 2022, at least 30% of works have been carried out. Longer terms are foreseen for IACP and condominiums. The 5 Stars want to make the Superbonus and the tax credit transfer mechanism structuralwidely used with building bonuses.
Cashback, created to facilitate payments by credit card and debit card and then suppressed, is re-proposed by the Movement with a novelty: the introduction of a mechanism that allows immediate crediting to the current account of deductible expenses incurred with electronic instruments. For example 19% of drug costs would immediately return to the account, at the time of purchase made at the pharmacy with an ATM or credit card.
Among the other proposals of the 5 Stars: the cancellation of the IRAP; the cut of the tax wedge for companies and workers, to increase the net payroll; maxirateizzazione of the tax bills.
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