The process towards the definitive start to the Chamber begins tax reduction on employees. The Montecitorio Finance Commission starts this week the examination of the government provision approved by the Senate last Wednesday 4 March.
We remember the details. Since July of this year, a supplementary treatment has been recognized to the recipients of income from employment (thus excluding pensioners). For the months of the year 2020, the total amount is equal to 600 euros; starting from 1 January 2021 the annual sum is 1.200 euros. The supplementary treatment is recognized if the total income does not exceed 28.000 euros. The treatment is due for services rendered from 1 July 2020 and is related to the period of work. There is also a further deduction from the gross tax, namely:
a) 480 eurosincreased by the product between 120 euros and the amount corresponding to the ratio between 35.000 euros, decreased by the total income and 7000 euros, if the amount of the total income is greater than 28.000 but not than 35.000 euros;
b) 480 euros, if the total income is more than 35.000 euros but not 40.000 euros; the deduction is due for the part corresponding to the ratio between the amount of 40.000 euros, reduced by the total income, and the amount of 5.000 euros.
The above deduction is due for services rendered from July 1st 2020 to December 31st 2020.
As for costs, it is estimated that the additional expense in terms of accruals for the year 2020 (net debt of the PA), is equal to 3.267 million euros, net of the savings deriving from the replacement of the 80 euro bonus, while the additional net burden in terms of cash (net balance to be financed from the state budget), compared to what is already foreseen in the trend forecasts, is approximately 2.677 million in 2020.
