Leo: “We’re thinking of cutting taxes on thirteenths.” The knot of roofing

ROME – Less taxes on workers’ thirteenths. Why, he explained the Deputy Minister of Economy Maurizio Leo during a hearing in the House on tax reform, the government wants to give another signal to employees, who with the decree approved on May 1st will benefit from a more substantial cut in the tax wedge, from July to December. “We are thinking of subjecting the thirteenth to a lower taxation, in December therefore, when the Italians will spend for the Christmas holidays”, said Leo. Alternatively, the executive is thinking of one detaxation of productivity bonuseswith a flat rate.

But how will the new tax intervention be financed? Leo referred to the tax cut fund, fed by the proceeds from the fight against tax evasion: a part has been used to cut the wedge, the idea could be to use another “portion” of this Fund. Also talking about the intention of reduce personal income tax rates starting next year, bringing them from the current 4 to 3, the deputy minister at the MEF also indicated another cover. The main pool from which the government wants to draw is that of tax credits: “The most important item – underlined the deputy minister – concerns the 227 tax credits which amount to about 36 billion Cubans: these can be cleaned up to put resources at the service of reducing personal income tax”.

The government is also looking at the possibility of recovering resources with the extra profit tax, which he modified with the latest budget law compared to the version of the Draghi government. “I believe that positive responses can come from the construction of the new standard, which has broadened the audience of subjects”, explained Leo. But there’s a problem: an 8 billion hole in state coffers. It is the shortfall from the collection envisaged by the previous executive. Of the 11 billion expected, just 2.8 were collected. It is no coincidence that Leo expressed “concern”, adding that “it will have to be covered”. Also for this reason, relying on the extra profit tax to cover the tax cut is a slippery operation.

Labor Decree, a 500 euro “severance pay” appears for temporary workers who are not stabilized after two years

02 May 2023

In the aftermath of the green light in the Council of Ministers for the Labor decree, Leo also returned to one of the measures contained in the provision: fringe benefits for employees who have children. For this year, the ceiling has been raised from 258 to 3,000 euros. The hypothesis is to make this increase structural. “The fringe benefits – he said – today are stuck at 258 euros, which are the old 500,000 lire. In yesterday’s provision, and this we plan to ensure that this thing is stabilized, we said: if the employer gives fringe benefits , especially for bills or other emergencies, up to three thousand euros, the worker deducts them and has a benefit”.