Home » Fiscal wedge, Orlando: there are no conditions for a sharp reduction, yes to a multi-year plan

Fiscal wedge, Orlando: there are no conditions for a sharp reduction, yes to a multi-year plan

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Fiscal wedge, Orlando: there are no conditions for a sharp reduction, yes to a multi-year plan

“The financial conditions for a massive reduction in the tax wedge are not there. I think it would be useful and interesting to think about a multi-year pact ». Thus the Minister of Labor Andrea Orlando returns to tackle the issue of cutting the cost of labor strongly requested by Confindustria, which in recent days has proposed a plan of 16 billion to invest in a structural cut in the tax wedge. Minister Orlando does not completely close the door and opens to the hypothesis of a multi-year plan linked to the fight against contributory tax evasion.

The wedge cut comparison

The words of Minister Orlando come from Vicenza on the sidelines of the CittaImpresa festival a few days after the proposal of the president of Confindustria Carlo Bonomi on the wedge cut. A proposal that is worth 16 billion and which provides up to 1,223 euros of structural advantage for workers with an income of 35 thousand euros. “The financial conditions for a massive reduction in the tax wedge are not there. I think it would be useful and interesting to think about a multi-year pact, which sees a link between the fight against contributory tax evasion and a progressive decrease in the wedge ”, explained the minister. “I think that lowering the tax wedge by 10 points in a single blow – concluded Orlando – is quite unthinkable”. Confindustria in its proposal had suggested, among other things, to go and find resources among the 38 billion in extra tax revenue that the State – it is written in the Def – declares to collect in 2022.

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The pressure to introduce the minimum wage

During the conference in Vicenza, the minister also returned to talk about a topic he has been insisting on for several days, namely that of an increase in wages, especially in the face of an increasingly evident rise in inflation. “An intervention on wages is urgent, if something is not done immediately there is a risk of a social crisis, but also a fall in internal demand, starting with services”, explained Orlando who clarified that mega-agreements are not needed, but rather a confrontation between the parties starting with the introduction of a minimum wage. This is a topic on which the majority pushes the entire Democratic Party – the secretary has clearly expressed himself on this point Enrico Letta – which also finds support in the Five Stars as its leader highlighted Giuseppe Conte.

The alarm about the shortage of manpower

The Minister of Labor also addressed the alarm raised by companies on the great difficulty in finding manpower; “One of the problems that haunts Italian companies is the search for manpower,” Andrea Orlando recalled in Vicenza during the debate at the Città Impresa Festival. «The paradox – the minister specified – is that in the face of greater funding for training there is less response from potential workers. On this issue we are paying the demographic curve and a balance at par or negative in the last years of emigration, and therefore of the availability of foreign workers ». Orlando does not then blame the citizenship income for the lack of manpower: “The citizenship income – he clarified – can be improved and is already improving because in the coming weeks the rules that provide for décalage after the second renunciation of a job “.

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