From the wedge to spending, the menu of the measure: aid for medium-low incomes and families

John

By John

In view of the budget, the interventions in favor of medium-low incomes and families with children are confirmed. This is what we learn from Mef circles. The revenue – it is explained – will come mainly from cuts and rationalization of expenses and it is confirmed that there will be no increase in taxes for people and companies. From the confirmation of the cut in the tax wedge and the merging of Irpef rates with the birth package. Spending review in ministries but also a contribution from banks.

Here are the key points of the maneuver which should weigh between 23 and 25 billion of which 9 in deficit.

TAX WEDGE AND IRPEF BRACKETS

– Confirmation of the wedge cut which should become structural as well as the three-rate IRPEF. These are the two key points of the approximately 25 billion maneuver whose scheme will be presented to the Council of Ministers tomorrow. According to some previews regarding the cutting of the wedge the action could be double. From next year the cut could remain contributory for incomes up to 20 thousand euros, and then transform into fiscal, with an increase in deductions for employed work up to 35 thousand euros. At that point a rather rapid decalage would start, up to 40 thousand euros. This would avoid a staircase. If the funds arriving from the composition with creditors and the related repentance are sufficient, the government could then reduce the intermediate Irpef rate, which goes up to 50 thousand euros of income, from 35 to 33 points

CHRISTMAS PACKAGE

– It is the other main feature of the maneuver which should provide support for the birth rate and families through the single allowance or with deductions aimed at the weakest groups. Among the measures that are taken for granted is the extension of the tax exemption for working mothers with two or three children to self-employed workers.

SPENDING REVIEW

– This chapter should bring at least 3 billion to the budget with the ministries having to communicate where they intend to save. Cuts that should however be manageable flexibly by individual ministries. Local authorities and municipalities should also participate in the spending review.

HEALTH

– In any case, healthcare spending will not be cut, which the government has undertaken to maintain as an impact on GDP. Minister Schillaci said he was confident that compared to the 5 billion allocated in last year’s budget law, there could be an increase of around 2 billion. Some rumors suggest up to 3 billion.

CONTRIBUTION FROM THE BANKS

– Fresh funds for the Budget Law should come from a solidarity contribution from the larger banking institutions but it is not excluded that it could also concern other sectors such as energy companies or insurance. Negotiations with the banks are ongoing. An increase in Ires and Irap seems to be excluded, while a contribution on the sums used to increase capital (and therefore not distributed as dividends) is on the table, but an intervention to postpone the DTAs (the active deferred taxes) and on stock options given to managers.

THE KNOT OF EXCISE TAXES

– The budget law should contain, as foreseen in the structural budget plan, the rule also reiterated by the Minister of the Environment Pichetto Fratin, to correct the misalignment between the excise duties on petrol, which are higher, and diesel, which are lower, and avoid the European infringement.

HOME AND RENOVATION BONUS

– The objective we are working towards is to guarantee the 50% renovation bonus for another year. Thus avoiding the tax break from falling to 36% from January.

PENSIONS

– There is nothing to be done for structural reforms on this front but we are working, however, to confirm the full indexation of pensions with respect to inflation. And an increase in minimum pensions. Among the hypotheses circulating there is also that of a refinement of the so-called Maroni bonus, with incentives for those who choose to remain at work even if they meet the requirements for retirement.

PA CONTRACTS

– As confirmed by Minister Giancarlo Giorgetti, the maneuver will also allocate resources for the renewal of public contracts for 2025-27.