The Italian government is implementing a fiscal maneuver aimed at reducing the Irpef tax, specifically targeting the middle class.
Deputy Economy Minister Maurizio Leo has expressed the intention to assist individuals earning between €50,000 and €60,000, a group that was overlooked in last year's tax reforms. The government plans to generate at least €2.5 billion through a concordat agreement to fund these tax reductions.
Additionally, the government is addressing concerns about healthcare funding cuts by allowing regions to reallocate unspent Covid-19 funds to address waiting lists in healthcare services. This is seen as a necessary step to mitigate the impact of previous funding reductions and ensure public access to healthcare.
The legislative process for the fiscal maneuver involves a large number of proposed amendments. The House Budget Committee is responsible for narrowing down over 4,500 amendments to a more manageable 600, which will be divided among the majority and opposition parties.
The deadline for reporting these amendments has been extended to November 20 to accommodate negotiations among political factions. Various parties, including M5s, Pd, and FdI, have submitted significant numbers of amendments, indicating active engagement in the legislative process.
The government aims to bring the maneuver to the House floor between December 15 and 16, with the goal of concluding discussions in the Senate before the Christmas recess. However, the tight legislative calendar poses challenges.
The government's commitment to tax relief extends beyond the middle class, with plans to reduce the Irpef for low-income earners as well. Deputy Economy Minister Leo supports measures that would allow for the installment of the second Irpef advance payment for VAT holders and self-employed individuals.
However, he emphasizes the need to identify the necessary resources to effectively implement these changes. The fiscal maneuver also includes provisions to enhance infrastructure and stimulate economic growth, with an allocation of €343 million for State Highways.
As the parliamentary process unfolds, the government faces the challenge of balancing the demands of various political groups while striving to deliver meaningful tax relief to both the middle class and low-income earners.
The outcome of this maneuver will have significant implications for the Italian economy and its citizens, particularly in the context of ongoing economic recovery efforts.