Cut in the tax wedge, birth of the service tax, remodeling of VAT rates. These are the key economic appointments for the Government, which will meet tomorrow in the Council of Ministers to approve the Stability Law. The total amount of the maneuver should be 12-15 billion in 2014 and rumors about new interventions are wasted. In a tweet, Prime Minister Enrico Letta invited Italians to wait for the definitive text, without giving credit to the indiscretions of the newspapers reported as facts. We, waiting for the text, limit ourselves to reporting the indiscretions as such.
TAX WEDGE, ONE-TIME FROM 2-300 EUROS IN SPRING
It is certain that the heart of the former finance company is the reduction of labor costs. The President of the Council himself has reiterated this several times. There is talk of 10 billion (the amount requested by the social partners) to be invested within three years: five in 2014, three in 2015 and two in 2016. The distribution of benefits between workers and businesses has yet to be fixed, but the former should receive around 2-300 euros in a single paycheck next spring. The bonus should be reserved for employees with gross income of less than 55 euros a year. From the point of view of employers, however, Ires and Irap reductions could be envisaged for companies that invest or hire.
SERVICE TAX
As for the new tax which will include IMU on first homes, Tares on waste and other levies on municipal services, a maximum rate of 3 per thousand or an imposition of 30 cents per square meter is assumed. The Government has announced an investment of two billion to reduce the weight of the levy and make sure that it is lower than the algebraic sum of Imu and Tares.
VAT RATES
The VAT chapter is perhaps the most delicate, because it affects the competences of the European Union. Today's three rates (at 4, 10 and 22%) could rise to four. A new threshold of 7-8% is being studied in which to bring together a series of goods currently taxed at 4 and 10%. However, it could also be a replacement rate for the 10% rate. The last hypothesis is that the Government simply chooses to move some assets from one rate to another. The final result, in any case, should not lead to further increases.
OTHER SIZES
We propose below a list of the other measures that could be included in the Stability law:
– possible cuts of 3,5 billion in healthcare;
– financing of the normal layoffs and in derogation;
– divestments of public buildings and spending reviews;
– review of Inail contributions as a reward for the safest companies;
– easing of the municipal internal stability pact;
– strengthening of social shock absorbers, above all the new unemployment benefit (Aspi);
– possibility of issuing mini-bonds to finance small and medium-sized enterprises.
