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.
