One of the most anticipated measures by companies and unions in the budget law that will get the go-ahead from the government by the end of the month is the cut of the contributory tax wedge. The solution, which in this phase of high cost of living would allow wages to be supported without increasing the cost of labor for companies, is part of Prime Minister Meloni’s economic program: the idea, as explained by the leader of FdI in the inauguration speech, is that to intervene gradually up to a cut of at least 5 points.
No robust cuts immediately, therefore, as the resources available are limited. The intervention would be in two stages: immediately, the 2-point contribution wedge promoted by the Draghi executive, which expires at the end of December, needs to be refinanced with 3.5-4 billion euros, to the benefit of workers with annual incomes gross up to 35 thousand euros (the transaction is expected in the new Budget law).
Urso: wedge cut for two thirds in favor of the worker, one third for the company
The tax wedge cut “will be two-thirds for the worker and one-third for the company”, anticipated the Minister of Enterprises and Made in Italy speaking from the stage of the annual Small Industry Forum, which took place in Mogliano Veneto (Treviso). The FdI exponent confirmed that it will be a gradual cut, not robust as, he explained, “you can’t do everything immediately but it is important to chart the course”.
Companies: shock cure on the tax wedge
The tax and contribution wedge in Italy today has reached very high levels: 46.5%, according to the OECD, among the worst at international level, almost 50% if we add social security contributions. 60% is reached if reference is made to the wage bill. According to the president of Confindustria Carlo Bonomi, a shocking intervention is needed, 16 billion to be allocated to incomes under 35 thousand euros, two thirds in favor of workers: 1,200 euros a year more in a structural way. As for the resources with which to cover this wedge-cutting intervention, according to Bonomi, public spending could be reconfigured by 4-5%. An operation that, out of a total of one trillion a year, would make 40-50 billion available.
The position of Cgil, Cisl and Uil
As for the unions, the CGIL is opposed to the hypothesis of sharing the cut of the tax wedge between employers and workers: the reduction of the tax burden, is the position of the union, must only be for the benefit of work and retirees. The CISL is pressing for a drastic cut in the tax wedge and taxes on workers and pensioners. The Uil asks that the operation on the cost of labor be made structural in the next budget law.