Sraffa, saggio di interesse, sistema fiscale

This paper covers three closely interrelated stages. The first regards Sraffa’s theory. It is argued in particular that: a) Sraffa’s 1925 and 1926 articles are closely linked to Production of Commodities by means of Commodities, inasmuch they state the minimal cost, which informs indirectly the 1960 book; b) minimum costs are linear and parallel to the x axis in competition, so they are independent of the quantity produced; c) any deviation from this situation entails rents; d) rents can derive from decreasing returns (agriculture, mines) or from increasing returns (oligopoly, monopoly). Sraffa’s system solutions are discussed in depth. Particular attention is attached to the determination of the rate of interest. This leads to interconnections with the Keynesian system, which are developed in the second stage. Here the necessity emerges of rendering structural what it now conjunctural, pushing the rate of interest towards zero. This target can be reached by a fiscal instrument, i.e. by levying a tax on gross interest, close to 100%. Thus public debt ceases to be a risk, and the public deficit may increase, as happens in the majority of countries worldwide. The third stage regards the fiscal system. To obtain a similar treatment of interest, and also to try to hit oligopolies effectively, we need to render the fiscal system global. The problem arises with the remaining fiscal structure, now dominated by the principle of a worldwide basis. It is shown that this circumstance has to cease, and that internal revenue must be collected on bases which are exclusively internal. Therefore primarily the direct taxation, and then the indirect, must be reshaped. It is most interesting that a consonance is found with the taxation in vigour up the Seventies, and with De Viti theory of fiscal systems, which is national and based on the benefit principle.