After the passage in the control room and the interview with the union leaders, the Government refines the proposal on the one-off deduction for 2022 financed with 1.5 billion euros, limiting it to income brackets up to 35 thousand euros.
Savings by band
Looking at the overall audience of 35 million affected workers who pay a contribution rate of 8.9%, according to the first simulations for the income bracket up to 8 thousand euros, savings, gross of tax effects, would be 64 euros per year, for that up to 20 thousand the cut in contributions is worth 160 euros gross, for incomes up to 25 thousand euros the savings would be 200 euros per year, which up to 30 thousand euros become 240 euros and at 35 thousand euros of income amount to 280 euros gross per year . Considering the net, the advantage is reduced for those with 35 thousand euros of income to 192 euros per year, equal to 16 euros net per month, while at 25 thousand euros of taxable net savings would be 155 euros, equal to 13 euros per month.
The assumptions still on the table
But the decision has not yet been made. There is also a second option being examined by government technicians, which is limited to income brackets under 20 thousand euros. Two hypotheses are being simulated: the first provides for a flat tax deduction of 100 euros for all incomes under 20 thousand euros, the second a 1% cut in contributions on the first 20 thousand euros of income. The “deductions” yard is still in motion, unlike the rate operation on which the government consolidated a position resulting from a majority agreement.
The bar, therefore, is lowering and it cannot be ruled out that it may still be lowered to the advantage of medium-low incomes, as the trade unions are asking. These wide-ranging estimates include the projections illustrated to the trade union leaders in the meeting on Thursday evening with the premier, the ministers Daniele Franco (Economy) and Andrea Orlando (Labor) where the bar for tax reduction had been set for incomes up to to 47 thousand euros, with a cut of half a point in contributions.
The solidarity contribution skipped
The dialogue with the trade unions continues. The last meeting of the Council of Ministers was preceded by a telephone conversation by Prime Minister Mario Draghi with the leaders of CGIL, CISL and UIL, respectively Maurizio Landini, Luigi Sbarra and Pierpaolo Bombardieri. The proposal to freeze the tax advantages – the result of the reshaping of the rates and the operation on deductions – for incomes over 75 thousand euros was considered to raise 250 million (to be added to the 500 million) to sterilize the expensive bills, measure then withdrawn due to the opposition that emerged in the majority in the council of ministers.