Tax, tomorrow delegation in the CDM: Phase 1 part of the reform for tax cuts

The fiscal delegation arrives tomorrow in the Council of Ministers to be held around 3 pm, immediately after the control room. Thus begins Phase 1 of the reform which aims, among the objectives, to intervene on the personal income tax in favor of the middle and lower classes and to simplify the system. However, the delegation will only define the framework for the reform interventions, followed by the implementing decrees to follow up on the measures. Cost of the operation up to 9 billion to be allocated for maneuver, drawing on the treasury of over 22 billion that emerged due to the impact of the upward revision of the 2021 GDP (+ 6%) on the deficit. As for the reform menu, there is consensus among the political forces for an intervention on the third bracket of 38% which concerns the income brackets between 28 thousand and 55 thousand, while the crux of the possible elimination of IRAP and the thorny question of the reform of the land registry, among other issues, the latter dossier that touches the naked nerves of politics and the economic fabric for fear that an update of the estimates will lead to an increase in the levy on the house. Among the issues on the table the fate of IRAP, with the possible cancellation of the regional tax on productive activities at least for individual businesses and professionals and the controversial land registry reform, caressed by all governments in the last decade and never taken off for the raising of protests against the risk that a cadastral review will lead to a tightening of real estate taxes. The reform would also intervene under the administrative-bureaucratic profile by simplifying the system and possibly revising the various phases of the tax relationship (assessment-collection-litigation). Among the other hypotheses on the table for companies, the cut of the single contribution on family allowances, Cuaf. In the meantime, there is expectation for the next budget maneuver, to be sent to the Chambers by 20 October, while on the basis of the EU calendar, the text of the budget planning document should be notified by the 15th of the month. The resources for the new budget would be around 25-26 billion: the more than 22.5 billion linked to higher growth, the resources linked to higher than expected revenues and those ‘freed’ in the wake of the decline in requirements. Of this ‘cake’, up to 9 billion would go to an advance of fiscal measures; up to 6 billion would be used to finance the reform of social safety nets and welfare measures; at least 3 billion for business incentives. Health measures, first of all the purchase of new vaccines, must also be financed; obviously the non-deferrable expenses and the renewal of the public employment contract.