The budget law in a nutshell
What's in the budget law. Facts, numbers and insights
With the country that "will grow well over 6%", the government passes a budget law that aims at development, even if it must be accompanied by structural reforms. An "expansive" budget law that "will improve and increase social cohesion" cuts taxes, stimulates investment and improves spending "with more attention to young people and women", consistent with the NRP.
THE FULL TEXT OF THE BUDGET LAW
Mario Draghi shows his satisfaction with a 30 billion “shared” provision that was applauded by the entire CDM. The premier comes to the press conference to illustrate measures and provide data on the budget law.
TAXES CUT
“For the tax cut there are 12 billion, not 8, to reduce the tax burden in 2022. Eight billion go to a targeted intervention to reduce taxes on companies, on people, on the tax wedge. We allocate almost 40 billion over a three-year period to the reduction of taxes, of which 24 to the wedge and the remainder to tax incentives, to households and businesses ”.
INVESTMENTS
And again: "We are strongly focusing on relaunching investments, 89 billion in the period from 2022 to 2036 but if one considers everything, the Pnrr, the funds allocated and the funds in operation, all this leads to a figure of 540 billion in investments in next 15 years ".
TAXES AND PARLIAMENT
But the game on the maneuver leaves some nodes open. On the tax cut there will be an interview with Parliament and the decision on the date of exit from work will also emerge from a confrontation with the political forces and the social partners.
PLASTIC AND SUGAR TAX
The holder of the Economy also confirmed the one-year postponement of the plastic and sugar tax. For the package of bonuses for construction, he indicated an allocation of resources "for almost 37 billion, of which 15 for the super bonus".
SUPERBONUS
The 110% superbonus, he stressed, "is extended to 2023 for condominiums and Iacp" and then increased to 70% in 2024 and 65% in 2025. For other homes, the 110% incentives are extended from 30 June to 31 December 2022, for homes that are main and with an Isee limit. The facades bonus is instead extended to 2023 but with an intervention percentage of 60%. Franco also assured that the resources for citizenship income will be increased by one billion.
CIG AND PENSIONS
For the Cig and the pension will go 1.5 billion. The guarantee fund for small and medium-sized enterprises will receive 3 billion. The incentives for bank mergers have also been extended to 30 June but "with a maximum limit of the size of the dta that can be used", said the minister, underlining that "this measure is aimed at all banks and the entire business system, not it's only for Mps ".
SHOCK ABSORBERS
Also in the field 3 billion for the reform of the shock absorbers. “It is an intervention with a universal ambition that brings protection tools where there were no, under 5 employees, and extends those that existed in companies between 5 and 15 employees,” said the Minister of Labor, Andrea Orlando.
"The protections in case of maternity for self-employed and professional working mothers and two instruments are strengthened – he added – the expansion contract to retire a portion of employees in exchange for hiring young people and the solidarity contract". The minister stressed that this is a maneuver "with a strong social sign and in contrast to inequalities".
THE FULL TEXT OF THE BUDGET LAW
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THE ESSENTIAL NUMBERS ON THE MANEUVER (summary of an in-depth analysis of the newspaper Il Sole 24 Ore )
The maneuver in its final version travels to 30 billion, and sets the net issuance ceiling of public debt securities for next year at 110 billion. Because the government has kept the point on its initial project despite the tensions that have run through the control rooms and the confrontation with the trade unions.
Among the 8 billion for the reduction of the wedge and the allocations for the other incentives, the fiscal chapter is worth 12 billion over 2022 and 40 billion cumulated over the three-year period, thus absorbing 40% of the value of the maneuver. But the practical translation of this commitment remains entrusted to a mediation to be built between the government and the parties, which has so far been unable to make its way through the negotiations on pensions, income, building bonuses and social safety nets. The result will be defined in an amendment that the government is expected to submit during the Senate examination.
The numerical identikit of the maneuver was traced by the Minister of Economy Daniele Franco at a press conference: the list opens with the 8 billion for the tax cut, and then winds up with 4 billion for health care (halfway between health fund and vaccines and anti-Covid drugs), 3 for the SME guarantee fund, 3 for social safety nets, 2 for interventions against expensive bills and 2 for public investments, 1.5 for pensions and the Cig and the same for incentives for businesses and local authorities, an additional billion for citizenship income that equalizes resources in 2021, another billion for culture and a means for education and research.
The picture is completed by funds for public employment (approximately 870 million over 2022) and those for the refinancing of non-deferrable expenses.
Even with the reductions and adjustments that have punctuated the entire preparation of the maneuver, Franco points out, the weight of the building bonuses remains important: there are 37 billion at stake for the next three years, 15 of which concentrated on the 110% super-bonus. .
The other large number that dominates the horizon of the maneuver is that of investments. The counter marks an additional 89 billion from 2022 to 2036, with a share of around 20% reserved for local administrations. For them comes the refinancing of provinces and metropolitan cities, emptied with many problems in recent years, and a new increase in the fund for local public transport: 1.350 billion in 2022-2026. Another 1.5 billion are earmarked for the Jubilee for 2022-26.
The acceleration on the development and cohesion fund has also been decided: it is increased by 23.5 billion, with 3 billion annually up to 2028 and 2.5 billion for 2029.
THE FULL TEXT OF THE BUDGET LAW
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THE PILLS OF THE MANEUVER (extracted from an in-depth analysis by Repubblica ):
€ 8 billion allocated to ease the taxes that weigh on individuals and businesses. Irpef and Irap, therefore, will be cut. The government, for the moment, limits itself to promising generically the reduction of the rates and the revision of the deductions. During the parliamentary debate, Palazzo Chigi will present an amendment that will really decide how to reduce. In the calculation of the reduction in the tax burden, the government includes the cancellation of the premium for 990 million (these are the collection costs claimed by Equitalia), the postponement of sugar and plastic tax, 10% VAT for the tampon tax, incentives for home and businesses, and the 2 billion against expensive bills (which will only be used for the first quarter of 2021 and could result in a cut in VAT rates). In all 12 billion.
NEW SABATINI FOR BUSINESSES
Businesses will benefit from aid of 1.5 billion. More in detail, the maneuver allocates 180 million – "for each of the years from 2022 to 2026" – to refinance Nuova Sabatini, the law that helps small and medium-sized enterprises to buy 4.0 machinery, as well as hardware and software programs capable of increasing competitiveness. Contribution exemption for individuals who hire subordinate workers, regardless of age, arriving from companies in crisis. The new Fund for industrial transition will have 150 million starting from 2022. It will guarantee concessions to companies operating in energy-intensive sectors, which will make investments for energy efficiency, which will reuse raw and recycled materials.
ALTITUDE 102
The heir of Quota 100 will therefore be Quota 102: in 2022 and only for one year, those who are at least 64 years old and have 38 contributions will be able to retire. In the budget law – for the truth – the expression "Quota 102" is never mentioned, but only the combination of age and contributions. Prime Minister Draghi does not like quotas and yesterday said it clearly: " contributory, we will see at what age and with what flexibility, how to recover pensioners who work illegally and correct the unbalanced pensions of young people. "A fund requested and obtained by the League and which will be managed by the Minister of Economic Development Giancarlo Giorgetti also enters the maneuver: 200 million per year for the three-year period 2022-2024. It will serve to guarantee "an early exit" to the workers of small and medium-sized enterprises in crisis "from the age of 62", without any contribution obligations. More than a pension it looks like an allowance.
THE SOCIAL EPA RENEWED
The social Ape is then renewed for another year and extended to other 8 heavy-duty tasks, such as elementary school teachers (those of the nursery school were already there), warehouse workers, beauticians, porters, gardeners, workers cleaning staff, vehicle drivers, mobile machinery and lifting equipment. The requirement for access to the Ape for the three months from the end of Naspi, the unemployment benefit, is then eliminated. The package is worth 141 million in 2022 (it rises to 275 million in 2023, and then falls in subsequent years). Another year renewal also for the Woman Option, but the exit age is raised: women will be able to access by 2021 turn 60 (if employed) or 61 (if self-employed) and have 35 years of contributions. In this case the cost for the State is only a cash advance, because the measure is self-financed thanks to the recalculation of the entire check with the contribution and a cut, estimated by INPS, of 33%. to discuss outgoing flexibility for all and at the same time guarantee the sustainability of public finances. Finally, the expansion contract is also extended to companies with 50 employees upwards (today it is 100): they can pre-retire up to 5 years earlier in exchange for hiring .
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Another 2 billion is arriving to "contain the effects of price increases in the electricity and natural gas sector in the first quarter of 2022". The maneuver approved by the Council of Ministers provides for this. With these resources "the Regulatory Authority for Energy, Networks and the Environment will reduce the rates relating to general system charges". The energy crisis has been going on for months. The government had intervened in June with 1.2 billion and at the end of September with 3.5 billion. The increases since October 1st have been “sterilized” to 29.8% for electricity and 14.4% for gas. With a subsequent measure, the government should also reduce tariffs in a structural way, with the possible passage of some items to general taxation
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The reform of the shock absorbers, inserted in the Budget law, introduces the universal shock absorber for all companies and all workers: 13 weeks (companies with 1 to 5 employees), 26 weeks (6-15 employees), 52 weeks (above 15 employees). Those who do not pay today, such as companies under 5 employees, will pay 0.5% for each paycheck. Firms between 6-15 employees rose from 0.45 to 0.80%. Those between 16 and 50 employees rise from 0.65% to0.80% and will have to pay another 0.90% more to access the CigS, the Extraordinary Fund. In the first year – 2022 – all these rates are discounted, thanks to a partial coverage of the state. There are 3 billion in maneuver, but the Minister of Labor Andrea Orlando speaks of a "net balance" for the reform equal to 4.5 billion.
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The citizen's income is refinanced, in a structural way and therefore forever, with over a billion a year starting from 2022, so "as to align the amount with the 2021 disbursement", explains the Minister of Economy DanieleFranco, equal to 8.8 billion. Ex ante controls are tightened and the link with work is made more stringent for those who are "employable".
The allowance will drop by 5 euros per month starting from the sixth month, as happens at the rate of 3% for Naspi and Discoll, the unemployment benefits. In the case of income, the cut is lighter: 1% of the maximum economic benefit for a single, equal to 500 euros per month. The reduction is not applied to families in which all members are unemployable or as long as there is a member under three years of age, with severe disability or not self-sufficient. In any case, the check will never fall below € 300 per month (for a single person, to be multiplied by the equivalence scale) and those of € 300 will not be touched. The cut is suspended if the beneficiary starts working. He resumes when he loses his seat. The Income expires if the beneficiary does not show up at the Employment Center, when summoned. And the second refusal of a job offer (no longer after three, as today) which can also be temporary, 80 kilometers from home, part-time, in administration (but not under three months) and anywhere in Italy (stable contracts only) "I share the spirit of income, but without abuses and without discouraging white work," Prime Minister Draghi said yesterday. The tightening of controls goes in this direction, up to the hypothesis of elaborating a pre-filled Citizenship Income, such as 730. The crimes for which immediate revocation is triggered are expanded. The lists of current beneficiaries will be sent to the Ministry of Justice for the verification of the presence of definitive convicts. question is unacceptable. Municipalities will have to carry out personal, residence and stay checks, preventive and subsequent checks within 90 days. If they don't, they risk tax damage.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/la-legge-di-bilancio-in-pillole/ on Fri, 29 Oct 2021 06:59:08 +0000.