Economic planning and tax reduction: an insight on the new financial plan in Italy

The Annual Report on Tax Expenditures, attached to Nadef, explains that “the strategy to contrast climate change” is one of the measures that will be taken into account for the reorganization of tax reductions within the tax reform. “The aim of the tax reform plan will simplify and reduce labour taxation and, in particular, mean incomes taxation which, so far, have only partially benefited from the tax reduction measures in recent years. The simplification goals will also help the achievement of a greater system transparency”. The highlight of the 22 bills, linked to the 2020-2022 budgetary measure, is the tax reform. The main reforms include the reform of social security cushion, the company Statute and the realization of differentiated autonomy, Article 116 of the Constitution.

The delegation on pension reform is not in the long list, but it will be on the agenda of the Executive, considering that in recent days the Prime Minister have announced that “quota 100” will not be renewed at the end of the three years of testing (see also “Il Sole 24 Ore” of 7 October). 22 bills as it had happened for last year’s measure (there were 12 in the two years ago Budget Law). During the next months, Conte 2 wants to focus its action on many fields. Last year the reduction of the tax wedge, the Green New Deal, the Family Act and differentiated autonomy were the subjects in the main bills linked up with a law.

The bills linked to the public finance manoeuvre are ad hoc measures, the goal is to achieve what is provided by the Budget Law. According to the accounting rules currently in force, the Government has to submit the texts of the measures to the exam of the Chambers by 15 November. The texts can obtain the green light both before and after the one of the manoeuvre. From 2008 to 2017, Openpolis calculated, 19 laws linked to the financial manoeuvre were approved (data from the 16th and 17th legislatures), about 2 per year. In the last period the average number of promulgated measures has definitely grown. In the 16th legislature (2008, 2009, 2010, 2011, 2012) the average was about one per year, with the 17th legislature the figure has tripled, reaching three.