Immediately after the summer break, the government will have to start working on the financial maneuver. The topics to be addressed are different, from military expenses to growth slowed by duties, but the most pressing seem to be taxes. The League for some time has been asking for a “fiscal peace”, a amnesty for unpaid tax collection folders, which would take the form of the Quinques scrapping.
In the executive, however, not everyone would agree with this solution, especially if modeled on the similar measures adopted in recent years. The resources are limited and most of the government would like to use them to reduce taxes at employee work, in particular on medium-high income, after the latest interventions on the low ones.
The scrapping Quinquies could return to the maneuver
The League is starting to put pressure on the government allies to include the Quinques scrapping in the financial maneuver.
The maneuver, or budget law, is the rule with which Parliament establishes where the resources of the state will be spent during the following year. It is therefore essential to implement reforms that require large allocations of money.
The scrapping Quinques would be the fifth version of a tax amnesty that allows:
- installment without interest and penalties any debt with the tax authorities;
- pay the accrued debts in 120 installments over the next 10 years;
- Trill all the tax collection files under 1,000 euros.
In the majority, however, there is skepticism. These measures cost a lot and the other parties of the coalition would like to use resources in another way.
The proposal to lower taxes to the middle class
The measure to which both Fratelli d’Italia, is Forza Italia pay more attention is the cutting of taxes to the middle class.
The goal is to lower the Irpef rates to those who earn up to 60 thousand euros. This intervention would follow those of the past years, which have confirmed the cuts of the tax wedge of previous governments.
In this case, the goal would be to lower taxes at employee work.
Both workers would benefit from it, who could earn more, and companies, who could offer more competitive salaries by spending less. The cut designed in particular by Forza Italia is two percentage points.
The IRPEF rate would go from 35% to 33%.
The expenses for the defense
However, a part of the resources will go to defense costs. Like the other NATO countries, Italy has promised the Atlantic alliance to gradually increase the resources spent for its army up to 5% of the GDP.
Of this percentage, up to 3.5% will be made up of real expenses for armaments, while another 1.5% can be added with other investments.
In this context, the new Safe Fund for European Defense should also be included, which will provide EU Member States up to 180 billion euros to modernize their military equipment and above all integrate them, purchasing weapons from European companies.
Interventions against duties
Finally, the government is assuming a waiting position regarding the duties. The Ministry of Economy has already updated the GDP estimates in the DEF, the economy and finance document on which the maneuver is based. However, direct interventions on the economy are not planned, at least for the moment.
The majority would have decided to wait for the first quarterly results, coming in September, to decide which sectors to intervene on.
