When the summer vacation is over, the construction area is opened for maneuver. The government has already set its priorities: to approve the reduction of the tax wedge for workers and to initiate a series of measures against the decline in the birth rate, especially to help families with more than one child. But there is also a knot in pension reform that needs to be untied, as Quota 103 expires at the end of the year.
Thirteenth’s tax deduction
One of the measures on the table that may see the light before the budget law is the tax deduction of thirteenth monthly salaries, a proposal that Deputy Economy Minister Maurizio Leo announced a few months ago. Today, the thirteenth month is considered taxable income in all respects and is therefore a burden for both Irpef and social security contributions. Quite the contrary: Irpef deductions are more severe as deductions for the employee’s job or dependent family members do not apply to the additional monthly salary. It is currently unclear how the government intends to intervene and how much extra wages workers should expect in their wages. The novelty of the last few hours is that this measure can be put forward and come into effect as early as December of this year (not next year as thought). But this will of course depend on the size of the “bonus” and the scope the admin can find. But it is legitimate to expect the thirteenth month to be richer at Christmas.
Extension of the tax wedge deduction
Tax wedge section. The number one goal of the majority is to approve the reduction of taxes on labor. The cost of the intervention to extend the 7-point cut to revenues by 25 thousand and to extend the 6-point cut to 35 thousand will be around 9-10 billion euros. Therefore, the economic expenditure is quite high. To give an idea, the cost of the measure is approximately the same as the old Renzi bonus of 80 euros and more than the basic income in the five-star version. However, the executive has prioritized several times that reducing the wedge, restructuring and rethinking could have detrimental effects on the popularity of majority parties. And on the payrolls of the workers in question.
Second child bonus and mortgage benefit
Another primary goal is to combat falling birth rates. The government had previously announced that interventions would be made for mothers with children. There are two suggestions on the table that complement each other. First, reducing IRES to companies that decide to hire women with three or more children; The second, which Family Minister Eugenia Roccella expects at the Rimini Meeting, is the introduction of a “bonus for the second child”. There will be 1.5 billion euros in the account for these interventions. Budget law should also include mortgage subsidies for the first home purchase. A measure for young people and couples under the age of 36 whose ISEE does not exceed 40,000 euros per year.
Pensions: League seeks 41 quotas, Forza Italia aims to increase minimum quota
Undoubtedly, the most thorny issue concerns pensions. It is very difficult for Kota 41, the league’s horsepower, to find a place in the financial field. Instead, we’re much more likely to eventually reach an extension of Quota 103, which allows you to retire at age 62 with 41 contributions. Approval of Ape Sociale and Option Donna, where the audience can be expanded, is also on the way. Forza Italia then pushes for a new increase in minimum pensions, an old passion of the Azzurri. We will talk about this again in the coming weeks.
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Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
