If we could count on a tax burden equal to the European average, every Italian family would save 1.506 euros in taxes per year. The CGIA arrived at this result by comparing the tax burden of all 28 EU countries. After that, he calculated how much more or less taxes an average Italian family would pay if they suffered the tax burden of the European country being compared. Having registered a tax burden 2,2 percentage points higher than the EU average, in 2019 each Italian family would have saved 1.506 euros.
• In the 2021 budget, a 20 billion euro cut is needed
The coordinator of the CGIA Studies Office, Paolo Zabeo, affirms: “With the next budget law, a shocking intervention is necessary which in a few years will reduce the tax burden by at least 3-4 percentage points. Those who believe that only 10 billion are enough are very mistaken: this figure is insufficient. For 2021, a reduction of at least 20 billion euros is required and this goal can only be achieved if it is possible to lower unproductive public spending and a part of tax breaks by the same amount. Performing this operation, however, will not be easy at all. In fact, in the last 10 years, the spending review has not produced appreciable results, while the number of tax deductions and deductions has increased dramatically, especially in this period of Covid ".
• We pay a lot for few services
An excessive tax burden such as that present in our country is a problem both because it lightens the economic availability of many families and as many companies and because it drains resources that could otherwise be invested to favor consumption, investments and, therefore, the development of the system. cheap. Underlines the secretary of the CGIA, Renato Mason: "With such an excessive tax burden and an audience of services provided by our Public Administration that in recent years has decreased both in terms of quality and quantity, this situation has contributed to a contraction of domestic demand and a collapse in public investment. But in addition to cutting taxes, it is equally important to simplify our tax system. Paying taxes has become increasingly difficult: experts say it, such as accountants and technicians from trade associations. Let alone how small entrepreneurs think who, in addition to taking care of their own business, are often called upon to deal with an abstruse and reckless tax bureaucracy that has no equal in the rest of Europe ".
• This year the tax burden is set to rise again
According to the latest data available (average for 2019), the tax burden in Italy stopped at 42,4 percent of GDP, up 2018 percentage points compared to 0,7. This increase occurred after 5 years of constant reduction of the tax burden. After the all-time peak reached in 2013, the burden of taxes and contributions has begun to decline, especially with the executive led by Renzi who, among other things, eliminated the IMU on the first house and reduced the cost of labor for new hires.
What will happen this year? Given that with the publication of the Update to the DEF expected in the coming days we will be aware of the threshold reached this year, we have the impression that the tax burden is destined to increase further. Not so much because the rates have been revised upwards, which in fact did not happen, but because we will record a vertical drop in GDP that is more significant than the contraction recorded in revenues. We recall, in fact, that the tax burden is given by the sum of the tax and contribution revenues; the result of this operation must then be related to GDP and, subsequently, multiplied by 100.
• In terms of taxation we are in 6th place in the EU
Among the 28 countries that constituted the European Union in 2019, Italy ranked sixth in terms of the weight of the tax burden as a percentage of GDP. Denmark has the most important tax burden (47,6 percent), followed by France (47,3 percent), Belgium (45,5 percent), Sweden (43,5 percent) and Austria. (42,9 percent). The sixth place in this particular ranking is occupied by Italy which in 2019 recorded a tax burden of 42,4 percent. While Germany has a total tax burden of 41,6% among our main competitors, the United Kingdom and Spain, both with a total tax burden of 35,2%, can even count on a differential of 7,2%. tax points less than in our country.
• With the taxes of Spain or the United Kingdom, an Italian family would save almost 5.000 euros per year
If in comparison with the average tax burden of the EU referring to last year (40,2 per cent) an Italian family would have paid 1.506 euros less in taxes, in comparison with the tax burden for Germany, instead, they would have saved 548 euros, with that of the Netherlands the advantage would have been 2.123 euros, with the United Kingdom and Spain it could even have benefited from a scissoring equal to 4.930 euros. Also among the major European countries, the result that emerges from the comparison with France stands out. If in Italy we had the same tax burden as Paris (47,3 per cent), the average Italian family would pay 3.355 euros more in taxes and even 3.561 euros if the comparison were made with Denmark, which is the country with the tax burden. highest in all of Europe (47,6 per cent) (see Table 1).
• With Portugal we have the record of fiscal “oppression”
In addition to having the tax burden among the highest in Europe, Italy is the country, together with Portugal, where paying taxes is more difficult, especially for companies. According to the latest statistics compiled by the World Bank (Doing Business 2020), our entrepreneurs "lose" 30 days a year (equal to 238 hours) to collect all the information necessary to calculate the taxes due; to complete all tax returns and to submit them to the tax authorities; to make the payment online or with the appropriate authorities. In France it takes only 17 days (139 hours) to complete the bureaucratic tasks deriving from the payment of taxes, in Spain 18 (143 hours) and in Germany 27 (218 hours), while the average of the Euro Area is 18 days (147 hours). The data refer to a medium-sized company (limited liability company), in the second year of life and with about 60 employees. The reference year is 2018.
