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Tria: “Helping low incomes against inflation, no concrete plan on flat tax”

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“What we notice is that it is above all underlying inflation that has increased, because the rise is shifting from food and energy to other sectors”, said the former Minister of Economy and economist Giovanni Tria to Adnkronos, commenting the latest Istat inflation data published today. “The problem is whether this stabilization is transferred to wages”, stresses Tria. “It is now clear that the cost of living has increased and although it is said that inflation will fall in 2023, the point is that it should become negative to return to previous levels ”. Lower incomes have now lost purchasing power, as the former minister points out, “and this is a fact, also because they are the ones who spend more on food and energy costs than higher incomes. It is a fact that it can only be recovered over time. The task of the government, therefore, according to the economist, “must be to redistribute the burden and help lower wages, within the public budget, that is, without producing further deficits. We must avoid starting a price-wage race. Otherwise it will be difficult to avoid a wage boost “. On the proposal for a flat tax that ignites the public debate these days, Tria comments:” Flat tax is an expression that can mean many things. Eventually to introduce it it would take a general reform of the tax system, but to date I have not read any concrete proposals in the electoral campaign. In short, coverage and many other factors must be studied “. “We keep in mind – adds Tria – that with respect to taxes paid as a percentage of actual income, there are many people below a certain income threshold who already today pay less than 23% and even less than 15%. So what should be done? Will you be charged more? I repeat, I have not yet seen concrete plans for the introduction of the flat tax in an advanced country like Europe “.

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