For some time now, the tax system in Italy has been growing increasingly inefficient and costly. Since the economic crisis in the country, the burden of this poor system has fallen on business owners and workers, according to a new study. According to a report offered by 'World Bank Doing Business', the economic crisis response in Italy has severely impacted workers, instead of focusing on public spending cuts. The study underlined that, in relation to taxes, Italy has 138th easiest taxes to pay, in comparison to France at number 52, and the UK at 14th.
Italy, like most countries in Europe, cannot loosen the grip that socialism has on them.
The Italian Socialists are Winning
The Italian tax system is more inefficient and costly than France, Spain, Germany, and the UK, especially for the employed. Whereas the situation in the UK is now improving for small business owners and the self-employed, Italy has seen tax increases over the past year. This burden has contributed to the stagnation of Italy in numerous ways, wasting time and resources on bureaucratic procedures and reducing competition. Furthermore, the argument has been made that the bad tax system reduces the desire to work, produce, and save in the country.
Sounds like California, Illinois, and New York State. Why work that hard if you are going to be taxed that much for the sake of the lazy and incompetent?
Currently, reforming the tax system in Italy remains a significant priority. The tax system must be less complex, moving business and employment taxes to consumers and reducing pressure, whilst cutting down on spending. But does Italy have enough conservatives or level headed people to do this?
The Issues Further Troubling Italy
Of course, bad taxes aren't the only thing that is causing Italy's economy to struggle. Unemployment is currently on track to average a new record at 12.6% (which is a product of high taxes). Estimations by the International Monetary Fund have pressed Rome to change how employment contracts are being structured. Furthermore, the IMF has announced that despite its generally positive hopes for Italy, the economy has yet to emerge from its recession. For the third year in a row, now, Italy's economy is set to shrink and public debt is believed to rise.
The socialists that dominate Italy are slowing killing their own country. This is what is happening in certain aforementioned American states.
Italy has the second highest public debt within the euro zone of over $2.5 trillion, following Greece. This year, the IMF predicts that this already substantial debt will have risen to about 136.4% of GDP from 132.6% in 2013. In addition to noticeably dragging down the economic growth in Italy, further unrest around the financial situation in the country could begin to spill over into other parts of the world. Experts have expressed concerns that a renewed bout of increased risk aversion may take place in global financial markets. Such an event could then lead to higher public spending, disruptions to commodity trades and markets, finance, and revenue losses.
Italy needs to Change Lanes
Such a serious economic scenario could have the potential to send financial shockwaves throughout the world, and as such, people are showing more potent concern about Italy's rather slow efforts to fight back and rebuild their economy. Italy has too many anti-business forces that have no problem taking money from the workers to give to the lazy and pathetic. And the latter segment of the population has not any problem voting for politicians who promise to give them more benefits without having to work for it. This is the same mentality that keeps Nancy Pelosi, Harry Reid, Barbara Boxer, and so on in office in America and this is why Obama has won elections in the past.
To some experts, the first step in saving Italy's economy will be dealing with its severe tax problems. Currently, GDP growth within the country is at a disappointing -0.2%. Not an impressive number.