reduce the tax wedge for the benefit of employees it would be better to act on deductions and supplementary treatmentactive, instead of limiting itself to intervening on personal income tax rates. This is the opinion expressed by Fabrizio Balassone, head of the Economic Structure Service of the Bank of Italy, during a parliamentary hearing on the manoeuvre.
“Since income from employment represents just over half of the total declared income – explains Balassone – the objective of reducing the tax wedge weighing on them would be more effectively achieved with the revision of deductions and supplementary treatment, rather than with the only reduction in rates which would also favor income other than that of employment".
Cutting the tax wedge is one of the most controversial chapters of the maneuver 2022, now under consideration by Parliament. The Government has allocated for this purpose eight billion euros, leaving however to the Houses the task of deciding how to use them. The unions ask that the resources be invested entirely in favor of the workers, reducing the personal income tax. Confindustria, on the other hand, is demanding further relief for the benefit of businesses: in particular, there is talk of the possibility of canceling Irap or of reducing it and merging it with Ires.
In this regard, Balassone recalled that the Irap it also serves to finance the National Health Service: if it were canceled, therefore, "alternative solutions" would have to be identified.
As for the chapter pensions, "thanks to the reforms that have made the link between the contribution amount, the expected residual life at retirement and the amount of the allowance more stringent - said Balassone - it is possible to introduce elements of outgoing flexibility into the pension system without jeopardizing financial sustainability . However, the need to contain the public deficit limits the possibility of allocating substantial resources. The immediately available margin contents can be used to facilitate the exit from work of people who perform hard jobs or are in precarious health conditions (Social bee). When the pressure on the public finances has eased, it will be possible to extend the margins of flexibility on the way out. It is on an increase in employment and productivity that the amount of resources that can be allocated to support the elderly without imposing an excessive burden on those who work depends”.
