If the taxation of savings goes beyond the maximum Irpef rate

Over the past 15 years, Italians' savings have become an increasingly valuable tax base for state coffers, with tax increases applied to various financial assets. Just think of the stamp duty that has been revised upwards several times since 2011 with emergency measures enacted to bring Italy away from the abyss. A paper tax turned into a real patrimony that affects the savings of Italians even if they do not produce income.

In addition, the soaring tax burden on financial assets has also continued over the years with higher rates on financial annuities (now on paper at 12.5-26%), which unfairly and irrationally affect financial income, with a taxation system that distinguishes between 'miscellaneous income' and 'capital income' and does not allow for the systematic offsetting of gains and losses from different financial instruments.

A handicap that, in fact, results in a higher effective tax rate than the 26% levied on income earned on most financial instruments and the 12.5% reduced rate on government and equivalent securities. The inconsistency between 'capital income' (periodic investment income, such as interest and dividends, but also capital gains generated by mutual funds and ETFs) and 'miscellaneous income' (capital gains arising from positive differences between the sale price and the purchase cost of other financial instruments) generates incomprehensible oddities in the eyes of the overtaxed saver. For example, if the bond pays coupons or the shares dividends, the proceeds are taxed even if the investor has suffered losses in the previous four years that generated capital losses. Or again: the investor could be called upon to pay a coupon/dividend tax over the life of the investment, even if he or she eventually suffers a stinging loss when selling the same security. Then there is the abstruseness (how else to call it) on mutual funds, which makes it impossible to offset positive income (capital gains) against any minus (miscellaneous income) realised on the same funds. Capital income can never be offset against any prior losses, whereas miscellaneous income can, but only within four years after the year in which the loss was determined.

In short, a path has been followed that affects not only income, but also the taxpayer's assets. All levies that, in their possible combinations, bring taxation on savings to around 43%, i.e. at the level of the highest Irpef rate but affecting all individuals indiscriminately.

Forget Article 47 of the Constitution: this taxation system does not 'encourage and protect savings in all its forms'. It would be a good idea to remedy and give substance to what is provided for in the tax delegation, not just to make electoral good intentions only to leave them on paper.