Friday, April 3, 2015

Tax burden increased to 43.5% – Il Sole 24 Ore

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This article was published on April 3, 2015 at 06:36.

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Fiscal pressure to record levels at the end of 2014. The photograph taken by Istat on the fourth quarter of last year shows that from October to December 2014, the tax burden on businesses and households Italian has reached 50.3 percent. With an increase of 0.1 percentage points over the same period of 2013. This figure ends to confirm what has already been anticipated by the National Statistics Institute on 2 March that the overall tax burden in 2014, which is the ratio of the sum of direct taxes, indirect taxes, capital taxes, social contributions and GDP was 43.5 percent. Always on the rise, as in the last quarter of last year, by 0.1% over the entire year 2013.

The increase in the tax burden in 2014, it must be said, however, can not take account of the measures taken by the Executive Renzi, starting from 80 € up to cut labor costs and IRAP decontribution for new assumptions. These measures that will manifest their effects on cutting the tax wedge only from 2015 and later in 2016 with the reduction of IRAP for operating businesses. The 80 euro in payroll, then, that immediately fueled the controversy between Forza Italy and the Democratic Party on the increase in taxes in 2014, remain outside the counting and by Istat since the bonus income tax (in name only) introduced in May can not impact in any way on the calculation of the tax burden: since its introduction is ranked among the major expenses (social benefits), in line with the requirements of national accounts.

What the Istat data tell us is that the total revenues in the third quarter of 2014, in terms of trend, increased by 0.8% with a GDP of 55.3%, up from to 54.8% in the corresponding quarter of 2013. The enabling Istat certify that throughout 2014 the weight of total revenue to GDP was 48.1%, as said of + 0.1% 2013.

From the disaggregated data highlighted by Statistics also shows that in the last quarter of 2014, operating revenues were up 1% and that as a result of a decrease of 2.8% direct taxes and increases of 5% in indirect taxes, social security contributions by 1% and 5.6% of other current revenues. Only capital revenue or investment grants and transfers in c / capital by households and businesses, at the end of 2014 decreased by 9.2 percent.

On the 2.8% decrease in direct taxes should be remembered the impact in terms of loss of revenue related to the maxi IRES and personal income tax (even up to 130%) paid by the companies in late 2013 and prepared by the Government to fund the abolition Letta IMU first home. While the increase in indirect taxes of 5% and, therefore, inevitably increasing the tax burden, can not be separated from one year to Iva ordinary grown 21-22%, increased taxation on financial income 20-26 % entered into force in mid-2014 and on which he recorded, as highlighted last month by the Department of Finance also increased distribution and total 25.7 billion paid by the Italians on the house and the sheds between Tasi and IMU.

The great challenge of the Government Renzi to reduce the tax burden is all in the fight against tax evasion, which according to the latest statements of the vertices of the administration already this year will have to change to put in the sights and especially the Iva big fraud. On 20 March, the same director of the Revenue, Rossella Orlandi had shown a reduction in the tax gap Tax of 8 percentage points in the last 12 years when eroded as each point corresponds to 1.3 billion annually. And when you consider that the average tax evaded tax gap estimated in the report released last summer by the MEF on evasion amounted to 91 billion, the scope for reducing the tax burden on families and businesses can be large with a struggle to ‘evasion without discounts and compromises.

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