taxes which need more coordination, this being however particularly difficult, i.e. taxation on
corporate and income capital at about a same and even rate.
National tiers should be the center of the distributional function and herein the financing
should be assured particularly by a progressive income tax and by the remaining social con-
tributions, plus excise duties, due to their relevant cross-border shopping distortion, when ap-
plied to lover tiers. In accordance with the subsidiarity’s principles, many services may be
scaled down to the conglomerate of local governments, where the best eligible candidates to
build the tax systems are present VAT, increased taxes on immovable property, benefit and
making a business taxes. Such choice is consistent with, also at the light of traditional theory
of taxation and closely resembles main examples coming from the most established Federal
States.
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