Flat tax, assumptions and costs: first changes to budget legislation

tax delegation landed in official Gazette and now the majority have 24 months for finalization of delegated ordersThat is, the rules that will implement the new tax system. In some cases the government is willing to go ahead. already in the next budget law In fact, laces can be inserted first stepStarting with erpf, for the purpose of accessing the frequently mentioned even tax, the biggest problem is the opposite Article 53 of the Constitution, which talks of “progressivity of taxes”, a principle that does not seem easily achievable with the same tax for everyone. The executive claims it can guarantee cut and cutlatest by the end of the period.

move towards flat tax

The first step would be the implementation single tax rate modelwould then identify the general principles that they would have to bring current personal income tax brackets Till the introduction of single tax. Article 5 of the draft law on tax reform approved by parliament explains how the change to a single tax also provides restructuring of tax expenseIn other words. Of Tax Deductions, Deductions and Credits, A basic step to maintain progress would be to increase them, but it is also possible to eliminate some.

hypothesis

The intention of the government to start this process would be to reduce already this year four to three rates, The first hypothesis, also prepared by the State Accounts Office, envisages integration of the second and third brackets into one, comprising Income between 15,000 to 50,000 Eur. In this case the withdrawal will be 27% (But there was also talk of 28%) while the first and last will remain the same. Above all, the advantage is clear for the third band, which will bring down the withdrawal percentage by 7-8 percentage points.

Cost

Reducing tax rates from four to three could cost 3-4 billion, However, even the projected cut in taxes on taxes has yet to be financed THIRTEENTH As an incentive for productivity bonuses and overtime pay. Light will likely appear with maneuver preventive agreement Biennale for self employment. surely the so-called will come at the same time national minimum tax on multinational companies, envisaged by the Delegation in the implementation of a European Directive: it would provide useful revenue for the financing of other measures. Further savings can be found Tax Exemption ReviewWhich are more than 600.