The government has given the green light to Maneuver 2024, to the Budget Plan Document (Dpb) which will be sent to Brussels by this evening, but also - surprisingly - to a law decree containing "urgent measures in economic and fiscal matters, in favor of local authorities, to protect employment and for needs indifferent". This is a provision that advances 3,2 billion in deficit appropriations from the Nadef. Two legislative decrees were also approved: the first on international taxation, the second on the Irpef reform, the only one initiated at the moment. All the others will have to wait.
Returning to the Maneuver, which it is worth 24 billion euros, focuses on cutting the tax wedge and on aid for medium-low incomes, Prime Minister Giorgia Meloni clarified during the press conference at the end of the Council of Ministers which approved the measure.
“We launched the 2024 budget, the Council of Ministers did it in record time: just over an hour, demonstrating the unity of views of the Council of Ministers of the majority that supports the government,” said Meloni during the meeting, adding that: “the The picture is clearly quite complex: in 2024 we will have approximately 13 billion euros of increased interest on the debt, to be paid pursuant to the decisions taken by the ECB, and around 20 in superbonus. The rate increase and the Superbonus do more overall than the budget measure."
Budget 2024: cutting the tax wedge
The priorities that we had announced are confirmed – explained Meloni – to defend purchasing power or more money in the paycheck for medium-low incomes, with the wedge cut of 6 points for those with up to 35 thousand and 7 for up to 25 thousand. It is an increase in the paycheck which on average corresponds to around 100 euros per month for an audience of around 14 million citizens", explained Meloni.
2024 maneuver: 7 billion for renewal of contracts and healthcare
According to what was indicated by the Prime Minister, the amount allocated "for" amounts to 7 billion euros contractual increases in the public sector”. Figure "available to Minister Zangrillo, particularly for contractual increases, of which over 2 billion concern healthcare, five are for the remaining sectors". 3 billion will go to healthcare, resources that will be used above all "to shorten the waiting lists", explained the deputy prime minister and foreign minister, Antonio Tajani, asking for an extra hand from accredited private structures and putting more money in the paychecks of doctors and nurses through the tax relief of extraordinary.
“I want to say clearly that for us the priority this year is above all the renewal of the security sector contract. I think we can no longer accept a reality in which a policeman earns just over 6 euros an hour for overtime, less than what a domestic worker earns: we need to intervene. The priority for us is the renewal of the defense and security sector", said Meloni.
How Irpef rates change
According to the provisions of the legislative decree reforming the Irpef, for 2024 the brackets are reduced from four to three, merging the first two brackets with a single rate of 23%.
The new rates for income brackets are therefore determined as follows:
- up to 28.000 euros, 23%;
- over 28.000 euros and up to 50.000 euros, 35%;
- over 50.000 euros, 43%.
At the same time, the no-tax area also rises to 8.500 euros and is aligned for employees and pensioners. Furthermore, next year, the deduction foreseen for income from work rises to 1.955 euros, from 1880.
The Irpef reform for 2024 it will cost around 4,1 billion. A change in revenue from "regional and municipal surcharges of -28,2 and -10,8 million euros respectively is also estimated, for a total change of approximately -4.149,9 million euros". “A change in TFR of approximately -52,6 million is also estimated,” it adds. In the overall loss of Irpef revenue of 4,1 billion euros, a lower Irpef sharing of the Regions with Special Statute/Autonomous Provinces of approximately -382,2 million euros is estimated", reads the provision.
Cut from 260 euros to deductions for incomes above 50 thousand euros
The Irpef-Ires legislative decree that accompanies the Maneuver establishes a linear cut to deductions from 260 euros for those with a "total income exceeding 50.000 euros".
Those affected by the reduction are 19% discounts, liberal donations to non-profit organisations, political parties and the third sector as well as deductions on premiums for disaster insurance. The mechanism outlined provides for the total of these deductions to be calculated, and 260 euros to be subtracted from the sum.
Maneuver 2024: huge deduction for those who hire and goodbye to Ace
The draft legislative decree for the reform of the Irpef also provides, for next year, a large deduction for those who hire on a permanent basis, with a privileged lane for certain categories, including young people admitted to youth employment incentives, women and former recipients of citizenship income.
For holders of business income and for those practicing arts and professions, the taxable cost of newly hired staff with permanent contracts "is increased, for the purposes of determining income, by an amount equal to 20%” for everyone but which could therefore be increased by another 10 percentage points up to 30%, in the event that the company decides to hire so-called disadvantaged workers". Among these: women with at least two children under the age of eighteen or without a job. Multiplication coefficients remain established with which to attribute greater weight to the cost of labor related to the hiring of categories of employees who are deemed to require greater protection.
The increase in deductions is accompanied byrepeal of the Ace, the facilitation of aid for economic growth. «It is also highlighted - explains the report - that the repeal of the ACE involves an increase in the IRES taxable amount on which the amount of the increase in incremental labor costs can find greater capacity. The greater revenue deriving from the combined effect of the two measures, for Ires entities, is therefore lower than the sum of the effects of the measures considered individually".
Self-employed workers: flat tax confirmed, Irpef advance payment in installments
For "self-employment", "here too important work began last year with an increase in the flat tax amount to 15% for self-employed workers: this measure is confirmed, and extended for another 3 years, a rule that I consider very important is the extraordinary continuity allowance, a sort of redundancy fund also for self-employed workers. Income is also expanded to take advantage of this social safety net. Furthermore, for the first time this year the self-employed will not have to pay the Irpef advance in November but to pay it in instalments in 5 installments from January to June", explained Prime Minister Giorgia Meloni.
The family package in the 2024 budget: free nursery for the second child
The government does not confirm the VAT cut on early childhood products, because it has been absorbed by price increases and I don't think it is worth renewing this measure, but we add three measures: we continue to work on parental leave, adding an additional month. Let's increase the fund for nursery schools: nursery school is free for the second child, approximately 180 million euros are expected, but the most significant measure of the one billion euros allocated is the decontribution of mothers, the State will pay the social security contributions".
Fringe Benefit: new roofs
The Premier also announced interventions on the chapter of Fringe Benefits, with a configuration that becomes structural: "We are making it structural, with changes for 2024, bringing the ceiling to 2 thousand euros for workers with children and one thousand euros for everyone else".
Pensions: full revaluation up to 4 times the minimum, early retirement more difficult
Social bee and woman option “they are replaced by a single fund for exit flexibility”, we read in the text. According to what Meloni explained. “There will no longer be a social Ape or share 103 as expected last year" clarified Minister Giorgetti, speaking of "more restrictive parameters for early retirement".
Check instead 104 quota for early retirement. “Quota 104 is not full – Giorgetti specified – there is an incentive mechanism to stay at work”.
The government has also eliminated the constraint that requires those who are on contributory pensions to retire at the age they have reached only if the amount of their pension is less than 1,5 of the social pension. “In our opinion it is not a correct measure and we have removed it,” said Prime Minister Giorgia Meloni at the end of the meeting.
Talking about the revaluation of pensions for the recovery of inflation Meloni explained that there will be a 100% revaluation for pensions up to four times the minimum, 90% between 4 and 5 times the minimum and then there is a decalage. The revaluation is confirmed for the minimum pensions of those over 75 years old.
For the minimum onesfinally, amounts lower than or equal to the INPS minimum will therefore rise to 618 euros from next January 1st.
Rai license fee cut
“There will be a reduction from 20 euro to 15 euro of the fee", explained the Minister of Economy Giorgetti, and the deputy prime minister Matteo Salvini specified "it is a reduction from 90 to 70 euros per year”, underlining that this is “the beginning of a virtuous path”.
Bridge over the Strait
“Like public works”, the Bridge over the Strait of Messina “is financed for the entire amount, 12 billion, in the multi-year projection of the times necessary to complete the work”, said Giorgetti, specifying that “in the time horizon of the first three years ago allocated the first three quotas to rise".
“There is full coverage for the bridge over the Strait. The Sicilian regional council allocated the first billion euros this morning. I hope to leave in summer 2024,” added the Minister of Infrastructure, Matteo Salvini.
global minimum tax
“We have introduced the global minimum tax,” announced the Deputy Minister of Economy, Maurizio Leo. This is the new global minimum tax, with a rate of 15%, payable by corporate groups with at least 750 million euros in consolidated turnover, essentially multinationals and the now famous Big Tech, from Amazon to Google.
Giorgetti confirms the stop to the Superbonus
Farewell to the Superbonus confirmed. “We have already abolished the discount on the invoice, nevertheless the dynamics of the Superbonus continue undaunted. We we didn't do anything in the Budget law on this: the work must be completed before the end of the year, if you want to benefit from the discount on the invoice. Otherwise the deduction mechanism starts without the possibility of invoice discounts and transfers, except for those accrued previously", the minister declared bluntly in response to a question on the Superbonus.
Cuts to ministries and cover-ups
There is little money available, Giorgetti and Meloni have repeated several times. For this reason, the government has asked ministries to present a spending review plan by the end of 2023. Ministries that do not do so will still face a 5% cut starting from 2024. “A sacrifice was asked of all ministries, which in some way had to give up projects and ideas” by implementing a “significant spending review” with a “5% cut on discretionary expenditure” of the State, regions and local authorities , commented the Minister of Economy, Giancarlo Giorgetti.
Speaking about the coverage, Giorgetti explained that "5 billion comes from cuts, 2,6 billion from spending remodulations, which have freed up space for 2024. Parliament has not affected the tax remodulation fund which allows the operation to be carried out on the Irpef staircase". The rest are in deficit.
