Italian government tax proposals leave unions in the cold | – #Italian #government #tax #proposals #leave #unions #cold
Summary Italian Prime Minister to prevent tax evasion tax incentives for firms that invest in and employ a collaborative approach with payers offer to do tax law trying to reduce his project from four to three.
ROME, March 14 (Reuters) – The Italian government’s plan to cut the current income tax bands from four to three within two years was met with hostility from unions on Tuesday, which they argued would mainly benefit the wealthiest.
According to a draft seen by government officials and Reuters, Prime Minister Giorgia Meloni’s government planned in 2027 national until the elections unit tax intends to fundamentally reform the fiscal system in order to achieve the
It also provides incentives for companies to invest and hire workers offer wants to do.
The three main trade unions, CGIL, CISL and UIL jointly after a meeting with the govt protest they said that they are considering holding the action.
“We do not agree with the three-tier scheme because it favors high and very high incomes, while 85% of Italian workers and pensioners earn less than 35,000 euros per year,” said CGIL representative Gianna Fracassi.
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Thursday law The government, which plans to approve its project, is considering setting the three bands at 23%, 33% and 43% in the short term, officials said, a more expensive solution being studied would lower the second band. 27%.
The current income tax, called IRPEF, is based on rates ranging from a minimum of 23% of annual income up to €15,000 and up to 43% for income above €50,000.
To avoid straining the Treasury, the Treasury is reducing and simplifying the 600 ways people and businesses can deduct various types of expenses from their tax bill. law plans to partially finance the project.
The document shows that this so-called “tax costs” state 165 billion euro (176.35 billion dollars) deprives of income.
Chronic tax evasion
Alessandro Santoro, a finance professor and former Treasury official who helped draft parts of Rome’s post-COVID Recovery Plan under Meloni’s predecessor Mario Draghi, downplayed the positive effects claimed by proponents of the flat tax model.
“Theoretically, the stimulative effects on employment and investment associated with income tax cuts have rarely materialized and in any case have been less than the negative impact on incomes of lower rates,” he told Reuters.
Under the fiscal reforms, the current 24% corporate income tax rate will be halved, introducing a second lower bracket of 15% to reward entrepreneurs who create jobs and invest in productivity-enhancing innovation.
“The more they hire and invest, the less they pay,” the Treasury document says.
The bill also, according to the latest Treasury data, 2020About 90 per year billion sets out a cooperative approach to try to curb Italy’s chronic tax evasion problem, which is costing the euro.
Rome gives small firms and the self-employed the chance to agree in advance how much tax they will pay to the state over the next two years without fear of audits offer does.
($1 = 0.9356 euros)
Reporting by Giuseppe Fonte Editing by Gavin Jones and Christina Fincher
Our standards: Thomson Reuters Trust Principles.
2023-03-15 07:24:50
Source – reuters
Translation“24 HOURS”