Tax reform, from micro-tax cuts to simpler rules

The cutting of micro-taxes and the simplification of the rules, but also the progressiveness of the system and the fight against tax evasion: there are four key principles of the fiscal delegation approved by the Council of Ministers. First of all, in the intentions of the government, the future reform aims to stimulate economic growth through greater efficiency of the tax structure and the reduction of the tax burden on production factors; second, the rationalization and simplification of the system also through the reduction of obligations and the elimination of micro-taxes; third, the progressiveness of the system, which must be preserved, following the dictates of the Constitution which recall a general principle of justice and equity. Finally, fourth guideline: the fight against tax evasion and tax avoidance.The bill, according to what we read in the note of Palazzo Chigi, intervenes on the dual system and on the Irpef, based on two pillars: the completion of the system and therefore the distinction between income from capital and income from work and the reduction of the effective rates that apply to income from work. Proportional taxation is envisaged for capital income, basically with an equal rate for all capital income, but gradually, with the aim of rationalizing the current system and making the capital market more efficient. income from work, a reduction in the effective average and marginal rates of personal income tax is envisaged, thus encouraging the supply of work, particularly in the income classes where second income earners and young people are concentrated. Then rethinking of the jungle of tax deductions-deductions on the basis of a careful evaluation of equity and efficiency. Finally, the reorganization of the taxation of savings is envisaged, paying attention to the need not to generate spaces for the avoidance of the IRES tax. With regard to corporate income taxation, the text intends to make the future system consistent with the dual approach. Therefore, in the process of implementing the delegation, it will be possible to modify the structure of taxes (rates and tax bases) charged to companies in order to align it with the tendentially and gradually homogeneous one envisaged for the taxation of all income from capital. Within this context, in any case, interventions may also favor the simplification of IRES with the aim of reducing the obligations for businesses. As regards VAT, the objective of rationalizing the tax is established, also with regard to the levels of the rates and the distribution of the taxable bases among the rates themselves. The aim is to simplify the management of the tax and to reduce the levels of tax evasion and erosion. IRAP GOODBYE. The delegation provides for the gradual overcoming of Irap. REVIEW OF THE LAND REGISTRY WITH ZERO IMPACT ON TAXES. The introduction of regulatory and operational changes aimed at ensuring the emergence of non-stacked properties and land is envisaged. It is also envisaged that a procedure will be launched that will lead to the integration of information on the buildings currently present in the Cadastre, through the recording for each real estate unit of the relative asset value, based, where possible, on the normal values ​​expressed by the market and introducing periodic adjustment mechanisms. However, this intervention has no tax impact. IMU ALL TO MUNICIPALITIES. The bill provides for the replacement of the regional and municipal surcharges to the personal income tax with the respective surcharges. The new system can be designed in order to ensure that Regions and Municipalities as a whole have an equivalent revenue. The revision of the current division between the State and the municipalities of the revenue from taxes on buildings intended for productive use is envisaged, in order, among other things, to make the Imu a fully municipal tax. Reform of the collection system overcoming the current system which sees a separation between the holder of the collection function (Agenzia delle Entrate) and the person in charge of carrying out the activity (Agenzia delle Entrate-Collection). The strengthening of the activity may derive from the adoption of new organizational models and forms of integration in the use of databases that will be evaluated and defined in the delegated decrees. The codification of tax regulations is envisaged and the aim is to start a process for achieving a reorganization of all the regulations within the Codes.