Government: taxation, citizenship income and pensions are the hot topics of the recovery

• Visco: Italy recovery strengthens, + 5% GDP in 2021

• Public accounts, Visco slows down on tax cuts: "Don't make a deficit"

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29 August 2021 The economic agenda that awaits the government to resume in September, after the summer break, is full and complex and risks becoming a terrain of heated political confrontation.

Tax reform, liberalization, relocation, social safety nets, the revision of citizenship income and Quota 100 are all topics on the Government's table.

September is the month in which every year the Ministry of Economy presents, by 27, the new estimates of the NaDef, a term that returns to everyone's lips every late summer when the Government has to update its economic-financial forecasts. The Update of the Def is the first step to arrive at the elaboration of the budget maneuver. The Economics and Finance document is fundamental for the drafting of the new Budget Law. 

In September, the Executive will have to complete the first part of the reforms announced in the PNRR: the proxy law on taxation and the competition bill, which were postponed in July to focus on justice reform.

 The tax reform is a postponed issue to be addressed shortly. The commitment is to start from the draft proposal approved by the Finance Committees of the Chamber and Senate on the basis of the fact-finding survey conducted for six months. Parliament has asked to reduce the personal income tax for taxpayers in the third income bracket (between 28,000 and 55,000 euros), to overcome the IRAP, to simplify the IRES and VAT regulations and to reduce micro taxes. The Minister of Economy, Daniele Franco, before the summer break indicated the roadmap with the farewell to Irap, the reshaping of the VAT rates, the cutting of the wedge, a single tax code and no assets. The goal is to build a new, more progressive but gradual IRPEF system.The stumbling block, however, are the resources because, as the minister himself explained, a deficit reform cannot be carried out.

  The problem in this case too is resources. The Covid emergency highlighted the need to protect all workers in the same way, spreading the idea of ​​universal amortization, even for the precarious and self-employed. The cost of the package studied by the Minister of Labor Andrea Orlando ranges from 6 to 8 billion.

. It is the toughest battleground between M5s and Lega. The League considers the citizen's income to be a harmful subsidy for the labor market. Matteo Salvini announced that he will be the signatory of the bill for the abolition and that he wants to use the resources to extend Quota 100. Giuseppe Conte defended what he called "a measure of civilization": but all political forces, including the M5s, agree that citizenship income needs a review that favors active policies. A table with the social partners and Minister Orlando on the subject is scheduled for 2 September. However, early retirement will not be renewed, leaving room for the 67-year old-age pension. A difficult path for trade unions,who instead offer flexibility in leaving from 62 years of age or with 41 years of contributions regardless of age.