Tax reform, ok Cdm without Lega. Land registry reorganization, Draghi: “Taxes don’t change.” Franco: “Cut a wedge”

Lega asks for time and leaves the control room

But the political figure of the current Council of Ministers, held a few hours after the election contest of the administrative elections, is the “tear” of the Lega, the political force that supports the current executive. Unlike the land registry reform, during the execution of the control room, she asked for time to analyze the contents of the tax delegation and left the control room while the meeting was still in progress. Notably, Minister Massimo Garavaglia, who represented the party at the table in place of Giancarlo Giorgetti, left the meeting early and told his colleagues that the League would deepen the draft, which also includes the reform of the land registry. According to what was later learned from League sources, the problem is not only the revision of the land registry, which has been opposed from the beginning, but also a question of “method”. You cannot receive “the papers” until the last minute, it is not “serious” to vote “on trust” without having been able to read the texts, reason the sources consulted. Among the doubts specifically expressed to the tax authorities, there is also that of the coverage needed to implement the IRPEF reform.

On the “non-presence of the League’s ministers at the CDM, Salvini will explain to us today and tomorrow – Draghi said at a press conference -. But the exchanges that took place before, in recent days, in the control room and in various conversations , had provided sufficient information to evaluate the content of the Enabling Act, which, as I said, is very general.These are not commitments that then become difficult to keep: it is a box, a box inspired by certain principles that I think are generally shared by the League ».

The path: ok Rooms than 18 months to implement reform

After parliamentary approval, the government has 18 months to implement the fiscal delegation by issuing executive orders. The fundamental objectives are the growth of the economy, by increasing the efficiency of the tax structure and reducing the tax burden on factors of production; the rationalization and simplification of the tax system, while preserving its progressiveness, which should also be carried out through the reduction of liabilities and the abolition of the so-called “micro-taxes”, the reduction of tax evasion.

From reform fund 2 billion in 2022, 1 billion 2023

Some solutions could be adopted in a shorter time. For the implementation of the tax delegation, it will be possible to use “2 billion in 2022” and “1 billion” in 2023 from the tax reform fund created by the last maneuver. We read this in the draft provision that is on the table of the Council of Ministers. The fund’s resources, it is specified, can be integrated with the new structural revenues from the fight against tax evasion. In any case, the implementation of the delegation should not weigh on the public accounts and any decrees requiring money will be taken at the same time or after the measures that provide the necessary resources.

Tax, design: lowering average rates to stimulate work

Gradually lowering average personal income tax rates “also to boost job supply and labor market participation, especially for young people and second-income earners, as well as entrepreneurial activities and the rise of taxable income”. It is one of the objectives indicated in the draft tax reform law. In order to ensure progressivity, efforts should also be made to gradually reduce “the excessive variations in marginal rates”.

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