Almost 90% of taxes go to the state: so municipalities and regions are struggling

“The central public administration is increasingly perched on a position of defense of its intermediary role”. These are the conclusions of a study of the Italian General Confederation of Handicrafts (CGIA) of Mestre which notes how almost 9 euros out of 10 that citizens pay in taxes ends in the hands of the central state. And this despite the fact that local administrations (which still have 14.6% of the total, equivalent to 75 billion) manage a greater portion of public spending. The data refer to 2019.

Consequently, municipalities and regions must refer to Rome for expenditure coverage. A further step that proves to be problematic. Yes, because the delivery times of the central administration are far from fast.

Simplify the overall tax framework. How much are personal income tax, VAT and Ires worth

“Simplify the general framework, cutting taxes and levies which, for the Treasury, often constitute more of a cost than an advantage”. This is another point on which the Confederation report, drawn up in view of the next tax reform, insists. The picture outlined by the study is of a few “big” taxes that alone affect most of the revenue from taxpayers. The first 20 items, for example, they are worth the 90% of the treasury. While Irpef, VAT and IRES alone are equivalent to 62% of public resources.

How much taxes have increased in the last 20 years in Italy

Lack of decentralization and complexity. But not only. In the two decades preceding 2019, the trend in taxes is represented by an increase: in short, more is paid. The data say so, because, in 2000, the tax authorities and local authorities collected 350.5 billion euros, against the 516.6 billion euros in 2019. The increase is 166 billion, or 47.4% since the beginning of the surveys.

Comparing the increase in taxes with the growth of the country, the CGIA of Mestre stressed that the growth in payments did not go hand in hand with an improvement in the Battery (3.5% in 20 years): in short, taxes have impoverished the Italians, “By not contributing to the growth of the country”, this is the conclusion of the Confederation. Inflation is not an explanation either: in the surveys it increased by 37%, 10 points less than the increase in revenue.

Maybe a tax mitigation will be implemented if the global tax project for multinationals kicks off (here what it is and what is the state of the art). To save money by reshaping state aid, the government is also thinking about abolishing the receipt lottery (who everything you need to know).

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