Step back in time: Silvio Berlusconi announces, repeatedly, to the nation, “We’re going to cut taxes”. Berlusconi’s economy minister Tremonti, “Hang on a moment, Silvio. We’ve don’t have the money.”. Taxes go up!
Jump to the present: Matteo Renzi announces, repeatedly, to the nation, “We’re going to cut taxes”. Renzi’s economy minister, Padoan, “Hang on a moment, Matteo. We’ve don’t have the money.”. Taxes go up?
Yes, folks, Italy has been down this path before and instead of taxes going down they went up! Well, one tax fell a wee bit, whereas another went up to compensate for the other going down. Unsurprisingly, tax levels stayed the same. More often than not, Italy’s tax burned crept a little higher. Those Italians who could continued to evade as much as they could get away with. Silvio Berlusconi set a great example and ended up being prosecuted for tax evasion. Fun isn’t it?
Will Fonzie Renzi end up pulling off the same trick as old convict Silvio? Let’s wait and see, but one of Renzi’s men, delirious Delrio, wants to put one tax up so he can cut another tax. Same old, same old.
Such is Italy and its spoil sport economy ministers 😉