Saturday, January 20, 2018

Prosperità per L’Italia

Italy is a wonderful country.  It has spectacular monuments, museums, churches, castles, cuisine, wine, and beautiful women:  Sophia Loren, Gina Lollobrigida, Claudia Cardinale, Monica Vitti, and Virna Lisi to name a few.

Italy is among the best countries in the world to spend two weeks on holiday.  There is so much to see, do, eat, and drink.  But Italy is a dreadful place in which to live, work, and especially pay taxes.

All that could change on March 4, 2018.  Italian voters have a chance to restore prosperity for themselves and their country, and show the way forward for all of Europe.

A coalition of center-right parties (market-oriented, low-tax conservative parties in American parlance) agreed to an electoral pact on Thursday, January 18, 2018.  Silvio Berlusconi of Forza Italia, Matteo’s Salvini of Lega Nord, and Georgia Meloni of Nationalist Brothers of Italy listed ten measures in their joint platform.  Topping the list was a single-rate flat tax:  Salvini proposes 15%, Berlusconi about 20%, with Meloni concurring in the general concept.

Should the coalition form the next Italian government, the flat tax will be the first measure it submits to Parliament.  A text of the law already exists, with only the exact rate to be set.  It would be relatively easy to select, say, a rate of 18-19%, with an agreement to reduce the rate one percentage point each year to 15% if revenue materializes as projected.

Italy would likely experience the benefits shown by President Trump’s reduction in the U.S, corporate tax rate from 35% to 21%.  Money would pour into Italy all over Europe and offshore for investment.  Tax evasion would decline.  New jobs would be created.  Young Italians could move out of their parents’ apartments and buy their own place.  Those who moved abroad in to earn a better living would return home to grab new opportunities.

It’s that simple!

As one of the big three in the European Union along with France and Germany, other European countries would find it necessary to follow the Italian example and adopt similar low, flat taxes.  All of Europe would enjoy a sustained economic boom.

PS.  By way of disclosure, I carefully reviewed, and prefer, the Northern League’s 15% flat tax plan, which originated with its chief economic advisor, Armando Siri.  I also met with Berlusconi to discuss the flat tax.  I believe the narrow difference between the two plans can be easily resolved into a single flat-tax plan.

Sunday, December 24, 2017

15% Flat Tax: Tax Reform Italian Style

Want to see the one of the world's best tax reform plans?  It was developed by Armando Siri, current economic advisor to Italian Prime Ministerial candidate Matteo Salvini of the Northern League.  The Nothern League will be joining two other free-market, low tax parties in a coalition to contest Italy's next national election, likely in March 2018.

If elected, and if Salvini becomes Prime Minister, one of its first actions will be to introduced its 15% flat tax plan.  This would be the beginning of Italy's resurgence, and a model for other European countries.  Here's hoping.

(Disclosure:  I advised Armando Siri on the development of his 15% flat tax.)

Tuesday, December 13, 2016

The 15% Flat Tax Coninues To Percolate In Italy

Armando Siri explains his 15% Flat Tax in Italian.

Go to Armando Siri's web page on the Italian Flat Tax

To watch the video click on the video play button.

For the English book cover of his Flat Tax see below. An English language edition of the book is forthcoming.

Monday, July 4, 2016

Personal Income Flat Tax Retreat: Summary And Update In Chronological Order


2007:  36% flat rate combined national and municipal
2010:  24.1%, 27%, 33% national plus additional municipal tax rates
           of 11.24-13.28%

Czech Republic

2008:  15% flat rate
2013:  15%, 22%


2004:  19% flat rate
2013:  19%, 25%


2008:  10% flat rate
2014:  13%, 23%

St. Helena

2012:  25% flat rate
2015:  26%, 31%


2004:  13% flat rate
2007:  15% flat rate
2011:  15%, 17%
2015:  15%, 20%
2016:  18%, 20%

The IMF, other global organizations, and a large majority of economists and tax specialists around the world oppose the flat tax on ideological grounds.  They have been working relentlessly for several decades to replace the flat tax with multiple, graduated rates.