That is why we need to introduce a property tax ordinary
It was not my intention to disturb the free spirit of Luigi Einaudi to borrow, to paraphrase the title of his famous work - The land and the tax - but what cha must now be addressed is a matter of national historical importance, because we need to redesign, without more ado, a different relationship between work, production and wealth. And if the eminent economist and President of the Italian Republic was talking about the need to protect and reward those who work and produce than those who live by rent, it is now no more, no less, to protect the national community responding positively to the inconvenience that this expresses.
Our country is the second in Europe in terms of size of public debt - 116% of GDP, the statistics tell us - but at the same time, the European country with the highest level of private assets: an asset equivalent to almost twice our GDP annually - a figure that puts us ahead of the United Kingdom and the Netherlands.
E 'this is the reason why Italy has been in recent months the shelter of the speculative attacks that have invested first in Greece and Ireland and then to a lesser extent, Portugal and Spain.
Without the algebraic sum of government debt and private wealth, our equity is positive, then Italy reveals a fairly good economic and financial stability.
The explanation for this phenomenon is in some ways very simple: in the last thirty years of republican history, while public goods and services were produced and paid in excess of what would allow the income tax, the wealth of Italian families grown at a rapid pace.
The description of this economic process but must be accompanied by two considerations. The first is that the abnormal growth of public spending is not derived solely from the increased supply of public goods and services made available to the national community but also, at any given time so prevalent, by a reckless waste of public resources resulting from the widespread use of corruption, demagoguery and illegal behavior. The second is that the increase of private wealth has affected large sectors of the Italian population, the increased availability was sufficiently widespread as to benefit not only the rich but also the middle class and even the Italian population, less wealthy.
This state of affairs could justify, at least in part, the predominance of a certain revulsion for what the public affirmation of a culture of private and privatization of our lives lived as a useful strategy and consistent with what was happening in Italian society. Here lie some of the roots of Berlusconi: do it yourself meant to live better and with more resources.
This model is entered in the last ten years, gradually but inexorably into crisis.
In particular, as regards the question of interest here, has failed the driving ability of private wealth to grow independently or at the expense of public wealth. Indeed, for certain categories of people among the poorest of our country, that trend reversed, and year after year, their total wealth has declined significantly. Unemployment, economic insecurity, reduced purchasing power and access to essential goods and services, this has resulted directly or indirectly in a growing private debt and / or the overall reduction in personal wealth and family.
All these social and economic difficulties - the fragility of the weak, the problems of the labor market, delays in infrastructure of an economy accustomed to privatize profits and socialize losses - has produced a growing demand and unmet public spending. An application is not corrupt or populist but real, a legitimate question and necessary.
Mortgages and historical figures of the global economy at the same time demanded a drastic reduction of public spending rather than growth. This question - in days gone by Maastricht - Italy whole, and especially Italy, which works, replied with considerable sacrifice to help "put the accounts in order" - as they said in unison that time Azeglio Ciampi and Romano Prodi.
Then, while Italy toiled in global competition and the definition of a new international economic order hostile to us, that's down with all the violence and drama of nineteenth-century capitalist crisis, the cold shower of September 2008. A financial crisis, economic and social burned in the short space of a few months, large shares of social and economic welfare of households in the West.
Faced with the scale of the crisis, the United States, France and Germany have not hesitate to intervene with substantial public resources to cope with the problems and immediate needs of their citizens and their businesses. In Italy this has not happened, and perhaps it was simply not possible: the burden of our historical debt has prevented an intervention to the situation objectively.
Better times will be - have played, even in recent months, the Minister of Finance and the guru of the national economy. And yet - alas - is as clear as daylight that the structural limits of the Italian economy go beyond the ordinary and extraordinary cyclical. Worse, the social unrest and economic marginalization of whole segments of the population make their and our condition of suffering a chronic illness.
E 'therefore all the more urgent action strong, energetic, forward-looking economic policy and public finance. But with what resources, and our readers will say immediately noticed the unfortunate citizens of our country? Resources there are none, the answer is unanimous. Indeed, to address the budget deficit, more cuts to three hundred sixty degrees are preparing: cuts to education and health, research and cuts to welfare, culture and cuts to essential public services. Cuts and more cuts, up to dissolve not only the state apparatus and public but also the very mechanisms of our civil society.
And 'This is the scenario in which we really want to start you?
need, now and with great determination, noting that the imbalance produced in the last thirty years should be stopped and reversed. The great process of redistribution of resources to the benefit of individuals and to the detriment of the public can no longer continue, because the game is now in the same civil and social sustainability of our country.
is not only to propose and apply a measure of social justice and equalization in the collective interest coverage, but this is even before you store and reproduce the basic rules of our common life.
the public wealth has been squandered in many ways - corruption, waste, failure of one or more ruling classes, private wealth has been enhanced in many ways - the ability to work and entrepreneurial positions of income and corruption, the spirit of innovation and flexibility, tax evasion and opportunism. But this imbalance can not continue. Otherwise, our fate is sealed: a minority live in barricaded cities and forts in luxurious residential districts, while the majority will become more violent, desperate, marginalized. E 'unfortunately a very real scenario, they know and experience day after day, whole societies, from Mexico to Nigeria. This process
Redistribution of income can "call (socially) accounts in order" can not wait and can not be practiced only by existing instruments.
Income taxes involved adjusting the annual flow of wealth. This is also an important objective in a country where tax evasion is estimated at 200 billion euro, or when we see more or less hidden tax avoidance for the benefit of profits from real estate and financial speculation. But not enough. The accumulated stock
- positive and negative private and public - are influencing the political and economic choices of entire societies.
It 's time that their positive contribution is significant. That is a property tax ordinary, able to reduce in a few years to 60% of our debt is necessary. Regular tax and not as a one-off heavy , because this country needs and rules of good behavior, without any kind of justice-let alone a justicialism tax. But we must record that we are living in a society where you can be working poor can be rich and living on pension, and this is extremely unfair, negative educational impact, uncivilized.
A sheet right in the method and especially useful in the end, because we need more research and education, more health and infrastructure, more services to citizens and aid workers in real trouble.
A company that wants to have a future is a society in which wealth, or common or not. A country, however, in which 50% of the wealth belongs to less than one tenth of the population, not a rich country, and indeed a country is unhappy, insecure, ultimately, a poor country.
For this reason it is necessary to wealth tax.
Venice, January 31, 2011
Giampietro Pizzo
