October 4, 2023



32 billion maneuver, 3% cut in the tax wedge for low incomes – Politics

4 min read

Cutting the wedge strengthened by up to 3 points for low incomes, overcoming the Fornero law with a ‘bridge’ solution that binds 41 to the stake of 62 years of age, a squeeze on basic income for which the possible cut is also being evaluated of the check. Between fixed points and measures that will be filed until the last moment, the maneuver takes shape and prepares for the expected launch in the next few hours in the council of ministers. A budget law that goes towards 32 billion, of which two thirds (21 billion in deficit) all destined for the energy emergency. The ax of financial coverage hangs over the other measures, to be found in the same sector of intervention. A difficult joint, to which must be added the very tight deadlines. The council of ministers is convened in the afternoon, around 5 pm, and it is not excluded that it will be anticipated by a technical-political meeting to finalize the package of measures, which could be defined in detail even after the launch of the maneuver that will arrive together with the Document budget plan to be sent to Brussels.

“Every measure that is introduced must be covered by the Mef. The situation is very complicated”, admits the undersecretary to the presidency Giovanbattista Fazzolari, who however excludes tensions and fibrillation in the majority. A climate also confirmed by the Northern League Deputy Prime Minister Matteo Salvini who announces: “There is absolutely agreement on the whole maneuver, we are also working on other details. If we were able to eliminate VAT on basic necessities and children, it would be a good signal”. government meeting on Friday, they look favorably on the intervention of Lega and Forza Italia. However, the measure, which would cost almost half a billion but which according to consumers would bring a benefit of only 21 euros into the pockets of citizens, would still be subject to evaluation. It could remain on early childhood products. We are also thinking about the tightening (with which resources of 1.5-2 billion are sought) on the basic income: on how we are still discussing in these hours, explains the Undersecretary for Labor Claudio Durigon, assuring that the aid will remain for the poor, perhaps by launching a fight against income swindlers. For the rest, it will not be for life and the idea is to take it away from those who can be employed with a transitional phase of six months: there would also be an ongoing reasoning on the possible reduction of the allowance.

Among the certainties, in addition to the package dedicated to energy (which will almost certainly contain a petrol discount and increased tax credits for businesses), the tax wedge is moving towards a replica of the 2-point cut introduced by the Draghi government for incomes up to to 35 thousand euros, while the cut will be increased to 3 points for the most vulnerable groups, with an income of less than 20 thousand euros. It remains to be understood who will benefit: Confindustria had asked the companies for a third; but Fazzolari assures, it will be “everything in support of the worker”. For pensions, the formula found to overcome the Fornero law is “41 + 62”, a bridging solution, explains Durigon, to dedicate next year to setting up an “overall pension reform” together with the social partners. On the flat tax, the increase in the threshold (from 65 to 85 thousand euros) for self-employed persons and VAT numbers would remain confirmed, while the hypothesis of introducing an incremental flat tax also seems to be losing ground. In the much-desired ‘tax truce’, the zeroing of bills under one thousand euros would remain, while the tax shield for capital abroad is set aside. For families, plans are being made to increase the single allowance and to intervene on parental leave. After the green web tax on deliveries, the tax on games appears, but the hypothesis is not confirmed. On the other hand, the remodulation of the extra profits is certain, even if the definitive solution is still missing. The idea is to base the calculation on profits and to raise the tax from 25%: a range between 30 and 33% is studied and the choice would depend on the decision that will be taken on the VAT cut. And in view of the increase in fines from January, Salvini takes action to block it and does not exclude that the vehicle could be precisely the maneuver.