Click here to download

The Erosion of the Personal Income Tax Base in Italy: Equity Aspects
Journal Title: ECONOMIA PUBBLICA  
Author/s: Bruno Bises, Antonio Scialà 
Year:  2014 Issue: Language: English 
Pages:  22 Pg. 145-166 FullText PDF:  232 KB
DOI:  10.3280/EP2014-003008
(DOI is like a bar code for intellectual property: to have more infomation:  clicca qui   and here 


This paper aims at analyzing the distributional (and revenue) effects of the deviations of the personal income tax (PIT) base in Italy from the taxpayer’s total income that was proposed as tax base by the Commission for the Study of Tax Reform in 1964 (which was inspired by the Schanz-Haig-Simons concept of income). It is clear in both the Report of the Commission and Cosciani’s writings that an equitable tax system requires that all income items are taxed within the PIT. However, financial income in Italy is excluded from the PIT since its introduction in 1974, and the erosion of the PIT base has continued to date. In the second part of the paper the contribution of the different types of income to the PIT base in Italy with respect to GDP between 1980 and 2012 is analyzed, and an assessment of the redistributive effect of the hypothetical inclusion of financial income in the PIT base is provided, using data from tax returns for 2010.
Keywords: Personal income tax, tax erosion, financial income taxation, tax design.
Jel Code: H00, B00, H24

  1. Bises B. and Scialà A. (2014). The Taxation of the Owner-Occupied House in Italy: 1974-2014. Public Finance Research Papers, Istituto di Economia e Finanza, DIGEF, Sapienza University of Rome, n. 7 (http://www.digef.uniroma1.it/ricerca).
  2. Bittker B. (1967). A ‘Comprehensive Tax Base’ as a Goal of Income Tax Reform. Harvard Law Review, 80: 925-985., 10.2307/1339337DOI: 10.2307/1339337
  3. Borri N., Nisticò S., Ragusa G. e Reichlin P. (2014). Cambiare l’Irpef pensando al lavoro, www.lavoce.info.
  4. Brys B., Matthews S. and Owens J. (2011). Tax Reform Trends in OECD Countries. OECD Taxation WP No. 1., 10.1787/5kg3h0xxmz8t-enDOI: 10.1787/5kg3h0xxmz8t-en
  5. Cosciani C. (1948a). A Critical Examination of the Italian Tax System. BNL Quarterly Review, aprile.
  6. Cosciani C. (1948b). Studi per la riforma tributaria. Rassegna dell’ABI, novembre.
  7. Cosciani C. (1949). L’imposta sul reddito in Inghilterra. Roma: Istituto Poligrafico dello Stato.
  8. Cosciani C. (1950). La riforma tributaria – Analisi critica del sistema tributario italiano. Firenze: La Nuova Italia.
  9. Cosciani C. (1961). Istituzioni di Scienza delle finanze. 4a ed. Torino: Utet.
  10. Cosciani C. (1967). La riforma tributaria: speranze e preoccupazioni. Moneta e Credito, n. 79. Also in Cosciani (1983).
  11. Cosciani C. (1971). Considerazioni sulle aliquote delle imposte dirette nel quadro della riforma tributaria. Moneta e Credito, vol. XXIV. Also in Cosciani (1983).
  12. Cosciani C. (1983). Scritti scelti di Finanza Pubblica. Padova: Cedam Cosciani C. (1984). I principi informatori della riforma tributaria nei lavori preparatori: validità e limiti nella situazione attuale. In: Gerelli E. e Valiani R. (a cura di). La crisi dell’imposizione progressiva sul reddito. Milano: FrancoAngeli. CSRT (Commissione per lo studio della riforma tributaria) (1964). Stato dei Lavori della Commissione per lo studio della riforma tributaria. Documento di lavoro elaborato dal vice Presidente prof. Cesare Cosciani. Milano: Giuffrè.
  13. Dalsgaard T. (2005). U.S. Tax Reform: An Overview of the Current Debate and Policy Options. IMF WP/05/138.
  14. Haig R.M. (1921). The Concept of Income. In: Haig R.M (Ed.), The Federal Income Tax. New York: Columbia University Press.
  15. Harding M. (2013). Taxation of Dividend Interest and Capital Gain Income. OECD Taxation WP No 19, OECD Publishing., 10.1787/5k3wh96w246k-enDOI: 10.1787/5k3wh96w246k-en
  16. Johnson P. and Adam S. (2012). A Strategy for the UK Tax System. Tax Journal. 23 February.
  17. MEF (Ministero dell’Economia e delle Finanze) (2011a). Gruppo di lavoro sull’erosione fiscale – Relazione. Roma.
  18. MEF (Ministero dell’Economia e delle Finanze) (2011b). Analisi delle dichiarazioni dei redditi delle persone fisiche presentate nel 2010. Roma: Dipartimento delle Finanze.
  19. Ministero per la Costituente (1946). Rapporto della Commissione Economica, vol. V Finanza, I. – Relazione. Roma: IPS.
  20. Mirrlees J., Adam S., Besley T., Blundell R., Bond S., Chote R., Grammie M., Johnson P., Myles G. and Poterba J. (2010). Dimensions of Tax Design. IFS. Oxford: Oxford University Press.
  21. Mirrlees J., Adam S., Besley T., Blundell R., Bond S., Chote R., Grammie M., Johnson P., Myles G. and Poterba J. (2011). Tax by Design. IFS. Oxford: Oxford University Press.
  22. Musgrave R.A. (1967). In Defence of an Income Concept. Harvard Law Review, 81., 10.2307/1339218DOI: 10.2307/1339218
  23. OECD (1984). Tax Expenditures. A Review of the Issues and Country Practices. Paris.
  24. OECD (2006). Fundamental Reform of Personal Income Tax. OECD Tax Policy Studies No 13. Paris: OECD Publishing., 10.1787/9789264025783-enDOI: 10.1787/9789264025783-en
  25. OECD (2007). Encouraging Saving through Tax-Preferred Accounts. OECD Tax Policy Studies No 15. Paris: OECD Publishing., 10.1787/9789264031364-enDOI: 10.1787/9789264031364-en
  26. OECD (2010a). Choosing a Broad Base-Low Rate Approach to Taxation. OECD Tax Policy Studies No 19. Paris: OECD Publishing.
  27. OECD (2010b). Tax Expenditures in OECD Countries. Paris: OECD Publishing.
  28. Piketty T. and Saez E. (2012). A theory of optimal capital taxation. NBER Working Paper No. 17989. http://www.nber.org/papers/w17989., 10.3386/w17989DOI: 10.3386/w17989
  29. Royal Commission on Taxation (1966). Report. Ottawa: R. Duhamel, Queen’s Printer.
  30. Royal Commission on the Taxation of Profits and Income (1955). Report. London: HMSO.
  31. Schanz G. (1896). Der Einkommenbegriff und die Einkommensteuergesetze. Finanz
  32. Archiv, XIII. Simons H.C. (1938). Personal Income Taxation. The Definition of Income as a Problem of Fiscal Policy. Chicago: The University of Chicago Press.
  33. SSEF-MEF (Scuola Superiore dell’Economia e delle Finanze “Ezio Vanoni” – Ministero dell’Economia e delle Finanze) (2008). Libro Bianco – L’imposta sui redditi delle persone fisiche e il sostegno alle famiglie. Tributi, Supplemento n. 1.
  34. Vickrey W. (1947). Agenda for Progressive Taxation. New York: The Ronald Press Company.
  35. Visco V. (1984). Disfunzioni ed iniquità dell’Irpef e possibili alternative: un’analisi del funzionamento dell’imposta sul reddito in Italia nel periodo 1977-83. In: Gerelli E. e Valiani R. (a cura di), La crisi dell’imposizione progressiva sul reddito, Milano: FrancoAngeli.
  36. Visco V. (2012). Prospettive di riforma fiscale in Italia. Rivista di diritto finanziario e scienza delle finanze, 2: 178-211.
  37. Zee H.H. (2005). Personal Income Tax Reform: Concepts, Issues, and Comparative Country Developments. IMF WP/05/87., 10.5089/9781451861068.00DOI: 10.5089/9781451861068.00

Bruno Bises, Antonio Scialà, in "ECONOMIA PUBBLICA " 3/2014, pp. 145-166, DOI:10.3280/EP2014-003008

   

FrancoAngeli is a member of Publishers International Linking Association a not for profit orgasnization wich runs the CrossRef service, enabing links to and from online scholarly content