Thursday, May 19, 2016

The announcement of Renzi: lower taxes from 2017 to the middle class, via Equitalia by 2018 – Il Sole 24 Ore

Lighten the burden of the tax on the middle class and families. It is the “top priority” of the next maneuver. To say it is directly Matteo Renzi. “We must go more in the direction of giving a hand to the middle class and families,” said the premier in live Twitter and Facebook #Matteorisponde. He adds: “We are discussing as if through the personal income tax rates or a different tax system.” The Prime Minister made it known that the resources will come from the “Version 2.0″ of the voluntary disclosure of which the first “step” “was a success.” Renzi also announced that by 2018 will go into retirement Equitalia.

“We are reorganizing” the tax agencies, Renzi says, adding: “At 2018 Equitalia does not get it. The reorganization of this system will incorporate an entirely different model. ” The Government aims to make the “system more and more available to the general public rather vexatious towards the city,” he says Renzi emphasizes: “We’re working” with the Minister Padoan, the director of the Inland Revenue, Rossella Orlandi and responsible Equitalia (the Ernesto Maria Ruffini).

How much income surtax, on the table there are several hypotheses: a mini-advance the reform in 2017 with a new “calibration” of the interim rates (cost about 3 billion), of which the Minister Padoan shows, however caution. This action, among other things, in the absence of sufficient resources could also involve the risk of a freeze of the planned cut IRES already incorporated in the trend of public finances. Alternatively, the government could work on the mechanism of deductions and deductions (especially for large families) or point to extend the bonus of 80 € to a few categories that do not yet benefit from it, such as pensioners.

The resources that the government has to find for the next maneuver oscillate between 12 and 15 billion sull’Irpef but without a direct intervention, which would increase the dowry required to 16-18 billion. These resources could be added to that relating to the deficit shown in Def and now authorized from Brussels (1.8% versus 1.4% “trend” with a “gap” of about 6.5 billion who become 11 with the objective of 1.1% indicated last fall). All this would serve to achieve the next maneuver three objectives: to defuse the fiscal safeguard clauses, VAT in the first place, more than 15 billion; not to further raise the level of deficit for 2017 agreed with the EU; keep some of the commitments made: from the lighter tax for the middle class to the flexibility in output for pensions (about 1 billion) to the support measures for large families (three million to 400 million) and even extending for one year the decontribution for new employees, albeit in reduced form. On the launching pad there is also the adoption of a package-businesses. Considering the resources related to the objective of the deficit in 2017, the gross budget for next year could range between 20 and 25 billion (25 billion to 30 billion based on the deviation from the 1.1% deficit stated last autumn ).

the one that will be played on the technical meetings until the time of the launch of the next Stability is in fact a game of no fewer than 12 to 15 billion, less than in the autumn are not available the new margins of flexibility (eg on “migrants”) not entirely excluded from the EU commissioner, Pierre Moscovici. The dowry will be retrieved by operating mainly three levers: “Phase 3″ of the spending review, voluntary disclosure encore with other interventions against tax evasion and tax reorganization of tax expenditures.

The “items” with the passing of weeks could change however. Even on the basis of two variables. The first is that of a partial VAT increase tied to the safeguard clauses. Yesterday Padoan and the deputy minister Enrico Morando reiterated that the government aims to completely sterilize the safeguard clauses. Brussels, however, suggests that half of the more than 15 billion of the clauses will be covered by acting on the deficit but indicates how viable solution to cover the remaining 0.45% of GDP (7.5 billion) a corresponding increase in VAT and excise duties. Even if it leaves the government the choice of other options. The second variable is the one concerning new margins of flexibility which are feasible in the fall. Moscovici not exclude them but on condition you comply with three poles: the deficit to 1.8%, the reduction of the debt / GDP ratio in 2017 and the push to privatization. On the latter front, the Government reiterated that matters to realize disposals totaling 0.5% of GDP not only in 2017 but already this year. In short this point could again be considered the sale of a portion of Poste while Fs discuss this issue again next year.

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