The wrong shot on the IRS. Better to think about the tax delegation

With a very broad fiscal delegation to exercise, a solid majority (barring slip-ups) and the well-founded prospect of lasting for the entire legislature Giorgia Meloni could have been more ambitious in describing and elaborating government interventions. The provisions illustrated while walking towards the Council of Ministers, between the offices and corridors of Palazzo Chigi, are, after all, adjustments, corrections (according to the line chosen by the government) of previous errors or omissions, as is certainly the case with the Citizenship Income and the Dignity decree. While for the tax authorities these are further extensions of spaces already created by Mario Draghi. For employee income, the decision involves adding another 4 percent cut to the social security contribution to Draghi’s 2 percent. There is a net effect on payroll (good) but, in the future, there is also a negative effect on the financing of pensions which will inevitably require some supplementation to be paid by the exchequer. While the extension to 2023 of the favorable tax treatment for fringe benefits is a continuation of what was already decided in the running at the end of 2022 by the Meloni government.