Maneuver, towards a summit on Monday with Meloni and Giorgetti: Irpef, flat tax and banks on the table
Quick Look
The government is preparing for a majority summit on Monday to define the measures of the budget plan, with particular attention to the cut in personal income tax and the flat tax on VAT numbers, while seeking resources and convergence between the coalition forces.
AI-generated summary
Why It Matters
The government is working on the definition of the budget plan, which establishes the guidelines for the financial maneuver, with limited room for maneuver and various proposals in the field regarding taxes and support for different sectors of the population.
Having created the framework of the numbers that will outline the interventions with the Dpb (budget planning document), now the game is all about the measures. This is also why the Government and the majority are trying to close ranks. For this reason we are moving towards a majority summit on Monday (anticipated by an article by Marco Mobili and Gianni Trovati in «Il Sole 24 Ore» of 17 October) with the Prime Minister Giorgia Meloni, the deputy prime ministers Matteo Salvini and Antonio Tajani, the leader of Noi moderates Maurizio Lupi and the Minister of Economy Giancarlo Giorgetti. The anticipation of a summit coming from centre-right circles must be an opportunity to outline the choices on the main points that remain open and on which the majority will have to find convergence or at least arrive at halfway convergence.
The Irpef cut
The margins for maneuver outlined by the Dpb are very limited, which is why the extension of the second Irpef rate of 33% up to 60 thousand euros saw a question mark appear alongside it. The intention to give a signal of attention also to what is more commonly defined as the "middle class" is there but we need to make ends meet. Therefore, it is a question of choices as the Minister of Economy, Giancarlo Giorgetti, recalled on the sidelines of the IMF summit in Bangkok: «You can decide to make interventions on the wages of young people, interventions focused on the elderly or generalized on the Irpef». But with the important underlining always by Giorgetti that the evaluation will always be collegial: «We will evaluate together with the parties, the leaders and President Meloni».
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The request for a "strong signal to the middle class" came from Deputy Prime Minister Antonio Tajani: "The further reduction of Irpef, something that the Prime Minister also said in the Chamber, must be one of the priorities, just as a signal to be given to the youth world must be one of the priorities". The problem, however, is understanding what the resources are: "We'll see in what form, we need to understand how much financial availability there will be."
The flat tax on VAT numbers
Another delicate issue is that of the flat tax on VAT numbers. The League does not intend to lower its flag to bring the revenue/compensation threshold from the current 85 thousand euros to 100 thousand euros. Here the obstacles are twofold: resources, as for the rest, but also European constraints, which set the threshold for subsidized VAT regimes at 85 thousand euros.
How to articulate the contribution requested from the banks
What to Watch
AI outlook — possibilities, not facts
The majority summit on Monday will lead to a draft agreement on the fiscal measures to be included in the budget.
Likely · Within days
The discussion on the flat tax for VAT numbers will remain open due to the European constraints on the threshold of 85 thousand euros.
Very likely · Within weeks
Open Questions
- What resources will be available to finance the proposals to cut the personal income tax and extend the flat tax?
- How will the European constraint on the threshold of facilitated regimes for VAT numbers be addressed?
- What form will the contribution requested from the banks take?
- What will be the final decisions on the Irpef cut and on the measures for young and old?
