The paychecks will be heavier. Eight billion to cut taxes – Economy

The paychecks will be heavier. Eight billion to cut taxes – Economy
The paychecks will be heavier. Eight billion to cut taxes – Economy

Rome, 20 October 2021 – More money in salaries for employees. In the budget maneuver there will be an ad hoc chapter aimed at reducing the so-called “tax wedge”, that is to say the difference between the salary that is actually collected at the end of the month and what employers actually pay. The discussion on the tax wedge held court yesterday at Palazzo Chigi. On the one hand, the forces of the Center-right, from the Lega to Forza Italia, who were asking for substantial intervention, perhaps reducing the share of resources destined for citizenship income. On the other hand, M5s and Pd, who instead held out on income even if they …

Rome, 20 October 2021 – More money in the payslips of employees. In the budget maneuver there will be an ad hoc chapter aimed at reducing the so-called “tax wedge”, that is to say the difference between the salary that is actually collected at the end of the month and what employers actually pay.

The discussion on the tax wedge held court yesterday at Palazzo Chigi. On the one hand, the forces of the Center-right, from the Lega to Forza Italia, who were asking for substantial intervention, perhaps reducing the share of resources destined for citizenship income. On the other, M5s and Pd, who instead held out on income even if they supported, with equal strength, the intervention to lighten taxes and contributions on paychecks.

Eventually it was achieved a compromise, with the dowry reserved for cutting the wedge which in the end rose to almost 8 billion, more or less the same figure as that intended for the refinancing of the subsidy strongly desired by the grillini (8.8 billion).

In the Budget Planning Document there are no details of the measure. And, probably, there will not even be in the economic maneuver that the Draghi-led executive should launch between the end of this week and the beginning of next. The resources, in fact, should flow together in a generic fund for tax reduction, which will then be used with the adoption by the executive of implementing decrees. There are two options in the field: a change in the INPS contribution rates or, more likely, a remodeling of the current “bonus” that employees up to 40 thousand euros in annual income find themselves in their paychecks.

As will be remembered, the supplementary treatment is 100 euros per month (1,200 euros per year) for incomes of up to 28 thousand euros and is proportionally reduced, to zero, to 40 thousand euros. The sum is added to the deductions for family loads and dependent work. From 2022 in any case, the contributions to the Cassa Unica Family Checks should be canceled, an intervention that would cost about 2 billion (of the 8 foreseen by the Draft Budgetary Document) and which would have a double advantage: that of favoring not only businesses but also families, since the levy also concerns home helps and carers. The cut of the wedge will be just the starter of the complex tax reform that the executive intends to implement in the coming months, focusing above all on the range between 28 thousand and 55 thousand euros of income, with a rate of 38%, 11 points more than the bracket between 15 and 28 thousand euros.

Everything will obviously depend from the resources available, since not even one euro of the funds provided by the NRP can be used to cut taxes. The leader of the League, Matteo Salvini, also yesterday reiterated his line: “Less taxes on labor with a tax wedge cut of at least 7 billion and a squeeze on sly citizenship income”. Even for the leader of the Cinquestelle, Giuseppe Conte, the road is to continue with “the cut in income tax which this year brought an extra 110 euros per month for 16 million workers”. Even more explicit Forza Italia and Italia Viva which, as Confindustria had already done in recent days, call for an intervention on the wedge of at least 10 billion.

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