Flat-tax and fiscal currency: joining the two proposals (by P. Becchi and G. Palma on Libero)

Article by Paolo Becchi and Giuseppe Palma on Libero of June 2, 2020:

There was a lot of talk about the money promised by the government that does not arrive and that of the Recovery Fund that will arrive, perhaps, from 2021. In the middle the 36 billion of the "light" MES , which to be honest can be requested already today but that could choke us tomorrow. The fact is that the Italian people are exhausted and strong social tensions may occur in a few months. A very hot autumn is announced. The orange vests are not sardines but the old "pitchforks". And they are a phenomenon not to be underestimated, like all the spontaneous protests that fill the squares in these days.

But let's see what could be done politically to meet the needs of the Italian people. On the one hand, the government has allocated first 25 and then 55 billion, completely insufficient to face the economic and social crisis that the country is facing, on the other the oppositions that – beyond the offer, in our humble opinion wrong, of collaboration with the government – some interesting suggestions have made it.
The Lega's proposal to expand the flat-tax is these days. From 1 January 2019, the 15% rate for the income of self-employed workers up to 65 thousand euros is in force, wanted by the yellow-green government, but Salvini would now like to extend the audience – this is the news – also to the so-called " tax families ”, Therefore not only to self-employed workers but also to those families made up of self-employed workers and employees with incomes of up to 55,000 euros per year. A fully acceptable measure , also in light of the fact that it guarantees the criterion of fiscal progress provided for by the Constitution (the limit of 55,000 euros ensures this criterion) and does not apply exclusively to self-employed workers. But is it enough to get the country back on its feet? We believe not. If approved, the Northern League proposal would put in the pockets of about 40 million Italian taxpayers just over 13 billion euros. A useful first step to freeing the economic energies of an Italy on its knees, but alone is not enough.
On the other hand the government, with the "Relaunch" decree, in articles 121 and 122 provided for the introduction of the " fiscal currency ", a national currency parallel to the euro that would serve to pay taxes, leaving the euro for consumption and investments. A good thing , due to the work of an intelligent group of 5-star MPs, who – if approved – need the political will to implement it through a series of executive implementing decrees. With the Democratic Party in government, to be honest, we believe it difficult. But the League could share the idea of ​​the fiscal currency.
Here then is our proposal: the two measures, flat-tax and fiscal currency, could go together. If the League, and in general the opposition, have decided to collaborate with the government, this would certainly be a good reason to do so. An exchange is possible: the oppositions support the introduction of the "fiscal currency" – replacing the Democratic Party, which in the implementation phase will probably oppose -, and Conte undertakes to introduce the League flat-tax.
The money from the Recovery Fund could come when the patient has already died, and there too we will have to see under what conditions and if we should take them. As well as the "light" ESM , which could have repercussions when we have to deal with the economic and fiscal surveillance of the EU. On this Lega and Fratelli d'Italia are therefore right to vote against. But why should the government wait for aid to come from the EU, on its own terms, if the country could be put back on its feet today – with flat-tax and fiscal currency ? Getting to 2021 with the two measures behind us would put us in a position to deal with the EU on an equal footing. Let's face it : collaborating with the government without being part of it is suicide for the oppositions; if there really is collaboration, then this is one of the few cases in which this is convenient for the national interest. Joining the grill proposal of the fiscal currency with that of the Northern League of the flat-tax seems to us a proposal that should be taken seriously, by the two political forces which are now divided, but which initially governed together .
Time is running out. In a few months, when the economic and social rubble will be evident, the people may no longer distinguish between majority and opposition. Primarily to the detriment of Conte and the yellow-reds, but also of Salvini and Meloni. Some signs of new social conflicts are already emerging. Ignoring them would be a serious mistake.

by Paolo Becchi and Giuseppe Palma on Libero of 2 June 2020.

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Literary tips :

by Paolo Becchi and Giuseppe Palma, “ QUARANTINE DEMOCRACY. How a virus has swept the country “, Historica edizioni.

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The Flat-tax and fiscal currency article : combining the two proposals (by P. Becchi and G. Palma on Libero) comes from ScenariEconomici.it .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/flat-tax-e-moneta-fiscale-unire-le-due-proposte-di-p-becchi-e-g-palma-su-libero/ on Tue, 02 Jun 2020 14:23:35 +0000.