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Tax wedge, 2 billion euro cut: hypothesis of abolition of the Cuaf quota

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While the government tries the final push to bring the tax delegation to the council of ministers, the engines are also warming up for the maneuvering measures that could anticipate some objectives of the reform. Because on the table there are the resources, 2.3 billion according to the calculations that could be updated with the Nadef arriving by 27 September, of the fund to reduce the tax burden set up by last year’s budget law, left free from mortgage of the loan to the household check.

Among the priorities expressed by a large part of the majority is a new intervention to reduce the tax wedge. And under the lens of the technicians, the Ā«CuafĀ» contribution, the Single Family Checks Fund, ended.

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This is a burden on employers that serves to finance economic support for households. Its abolition, from the point of view of those who push in this direction, has more than one advantage: the cost is all in all contained, around two billion, and would make it possible to use the roofs available for a structural and definitive intervention, without wasting them in new fiscal measures that with these sums would inevitably be partial and not very perceptible. In this way there would be a sharp reduction in the cost of labor on the business side, but the families who pay the contribution for carers and domestic collaborators would also benefit.

In this way, the measure would also have the advantage of enriching the chapter of measures for the family, at the center of the government agenda with the implementation of the single allowance for children from 1 January next. The alternative hypothesized in recent weeks would be to start the reduction of the third personal income tax rate, the one that above 28 thousand euros of income produces the staircase, making the demands of the taxman jump from 27 to 38%. However, this option is complicated by two factors: each point to be cut at this level costs three billion a year, which would end up financing an almost imperceptible measure by those directly concerned and inevitably extended to the highest incomes as well.

In the majority, however, there are also those who push for an alternative path, which aims at the abolition of IRAP as early as January with a trap activated by the budget law. The objective, indicated by the document on the tax reform dismissed in July by the Finance committees of the Chamber and Senate, is the absorption of IRAP in the IRES, which would however need to be financed to cover the three billion a year paid today by subjects affected by Irap but not by corporate tax. The idea was relaunched in recent days by the chairman of the Finance Committee of the House Luigi Marattin (Iv), but it could find support in various sectors of the majority. The farewell to Irap was relaunched on more than one occasion by former premier Giuseppe Conte on his electoral tour in the cities, and is also frowned upon by the center-right who in the past had repeatedly proposed the same move.

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