Irpef reform and strike: here is who loses and who gains

Is it really the middle class that earns the most? That is, the middle class is the one that earns 50 thousand euros per year? Here is a precise analysis

The IRPEF reform, what is it? The strike of Thursday 16, yes or no? Or rather, against or with whom and against what? Let’s start by considering the IRPEF reform which is one of the ten stages of the tax reform under discussion in the next 18 months.

What are the judgments on which to dwell? 1) With the new Irpef everyone gains; 2) the middle class gains; 3) self-employed workers are in any case penalized; 4) tax evasion decreased in 2019 (source: Cgia di Mestre); 5) if poor taxpayers pay little or nothing and enjoy public services then theirs is assistance; 6) no to the strike against the tax reform because if Draghi falls he ends up from the frying pan / yes to the strike because the Draghi reform is neoliberal.

What is the evaluation of the Parliamentary Budget Office (Upb) of the “Government delegation for tax reform? «That the principles and criteria identified are acceptable, but sometimes too indeterminate. Some fundamental guidelines are missing for an overall and organic redesign of the tax system.

This reflects, on the one hand, the heterogeneity of the political direction and, on the other, the fact that the formulation of the enabling law was not preceded by the work of a Commission of experts ”.

The answer to the statement that everyone gains is that it is false because the recipients of taxable income up to 18 thousand euros do not earn anything from the IRPEF reform and because the slightly higher income bracket earns only 8.3 euros per month. Is it really the middle class that earns the most? That is, the middle class is the one that earns 50 thousand euros per year?

The statement that workers are penalized is false because the tax – with the same taxable income – is halved compared to that of employees and pensioners.

The statement by the Mestre CGIA that tax evasion – which sees self-employment as the protagonist – is down in 2019 is completely false because in 2018 it exceeds 90 billion euros, while in 2019 it stops at 80 billion just because some important evasion items are still missing (data are incomplete).

The argument that poor taxpayers do not pay for services sounds like a stigma but has no legal or political foundation. Our Constitution, in fact, seeks social justice by making those who have more pay more taxes and those who have less pay less, guaranteeing the same accessibility to essential public services.

The last point concerns the strike called by CGIL and UIL against the IRPEF reform. Who should protect the union? The interests of employees and retirees obviously and must do so against those who, by supporting the Flat Tax, leave the burden of supporting the tax burden to employees and retirees.

Do not two advantages seem too much, namely paying few taxes and / or evading them big time? To me, yes, for reasons of sustainability of public finances, for reasons of equity, social cohesion and economic growth.