The paper examines the role of Irap in the Italian taxation system. In particular it analyses the role of this regional tax in the 1997-98 fiscal reform in the light of the objectives to simplify and streamline the system, increase neutrality, reinforce the financial autonomy of the regions and reform their funding. Successive developments are also looked into, especially the greater autonomy of the regions. The matter of the announced abolishment of Irap is discussed considering the problems faced by the regions in terms of financial autonomy and coverage.only subscribers can see the full article

Through taxation modern states have funded the two basic functions which have characterised the history of democracies in the 20th century: the provision of services and income redistribution through the principal of progressivity. The current anti-tax extremism propagated by the right worldwide has a political rather than an economic objective: to reduce fiscal revenue and as a result also public services. In this way citizens disaffection for the state increases and the sense of collective responsibility decreases. Therefore, the funding of the welfare state cannot be discussed without bringing the matter of the democratic legitimacy of taxation to the forefront of the political debate. In fact, the reformatory forces have often used the same petty terms of the conservatives. Distinctions between the right and left have disappeared with one single slogan on the lips of all politicians: less taxes at all costs. However, it is necessary to restore the centrality of the state’s role, crucial in a market economy, in the use of taxation as one of the tools for the funding of public services and functions, applying notions of distributive equity and socio-economic justice.only subscribers can see the full article