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Affiliation(s)

Ministry of Economy and Finances, Rome, Italy
University “La Sapienza”, Rome, Italy

ABSTRACT

Starting from the premise that Italian real estate taxation is inefficient and unnecessarily complex, the paper suggests two tax reforms. The first proposal puts forward progressive property taxation on the family basis; the second one suggests inferring a property income within the general calculation of the personal income tax. The common features of the two tax schemes are: the use of property market values instead of cadastral rents, a general reduction of the real estate local tax, a strong cutback of the stamp duties and registration fees applied to real estate transfers. A microsimulation model is employed to evaluate the impacts of the proposed taxation schemes. They both show, providing for a constant tax revenue, stronger redistributive effects.

KEYWORDS

real estate taxation, local tax, redistribution, personal income tax

Cite this paper

Economics World, Nov.-Dec. 2017, Vol. 5, No. 6, 499-513 doi: 10.17265/2328-7144/2017.06.001

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