The Danish experience
It is at this point in his speech that Draghi revealed that he is looking at the experience of other countries, realities that teach us that tax reforms, also to prevent the government from being crushed by the demands of specific pressure groups wishing to obtain advantages, they should be entrusted to experts, who know well what can happen if a tax is changed. For the premier the best practice it comes from Copenhagen. In fact, in 2008 Denmark, which has one of the highest tax rates in Europe, had appointed a commission of tax experts which, after meeting with political parties and social partners, had presented a project to the Danish parliament that provided for a cut in the tax burden equal to 2 points of GDP. The maximum marginal rate of income tax was reduced, while the exemption threshold was raised, explained Draghi, recalling that a similar method had also been followed in Italy at the beginning of the 1970s, when the government entrusted a commission of experts with the task of redesigning the tax system, which was firm to the Vanoni reform 1951, introducing the personal income tax and the withholding tax for employee income.
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Contain, streamline and maintain progressivity
But what is original about this “Denmark method?” In reality, as Carlo Garbarino, a Bocconi professor, explains, the example given by Draghi has nothing extraordinary. The 2008 Danish reform proposal is a simple, and not the most striking, example of how things should work and how they actually work in most Western countries, but a little less in Italy. As Draghi himself wanted to underline, we too had an example of correct practice with the great tax reform of 1973, where a technical commission, freed from the catchphrases of political slogans on tax reduction, elaborated its plan, a plan which is then always handed over to the government, its only real interlocutor, which in turn will decide whether to present it and how to parliament. Garbarino believes it is obvious that today, in Italy, taxes should not be increased to face the crisis because that money will come from Europe, while the logic that indicates the way is illustrated by Draghi: to contain, streamline, prune and maintain fiscal progressiveness. In short, the premier has not said anything that is not normal and right to say. But sometimes it is worth repeating, Garbarino concludes, those concepts that any tax expert takes for granted and obvious.
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Lintel fiscal reform of fiscal policy
therefore Draghi wants to get his hands on the tax authorities immediately, studying a profound revision of the personal income tax with a view, as he explained, to simplify and rationalize the structure of the levy, safeguarding progressiveness and reducing the tax burden. All to be combined with the necessary fight against tax evasion, one of the great plagues of our country. Because, as he clearly stated in the House, a tax reform marks a decisive step in every country. It indicates priorities, certainties, offers opportunities, the cornerstone of budgetary policy.
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