A tax break on salary increases for young workers. The idea was launched by the Minister of Economy, Giancarlo Giorgetti, in view of what, as he himself underlined, could be the last maneuver of the Meloni government. The objective of the measure would be to encourage growth in the wages of those under a certain age, through more favorable taxation on increases recognized by companies.
Giorgetti’s idea
The head of the economic department spoke about it via video link during the UDC party: “The idea that I put on the table for young people is that the salary increases that could be recognized by employers for young people under a certain age could have a preferential tax treatment. I remember the great success that the government’s initiative had, last year, to recognize a 5% flat tax on contractual increases. I think that this success can be transferred, with the necessary precautions, also to any increases salary granted to young people in companies. These are all ideas that must be discussed in the government coalition, and cooperation between employers and the state’s willingness to recognize this type of benefits are needed.”
“We are approaching the latest budget law, perhaps, with a great spirit of responsibility – explained Giorgetti – but also with the awareness that we must, in such a difficult context, try to help and promote development and reach out to the social classes and classes that until now have not had the attention they deserved. We must also make a sort of inventory of all the measures we have adopted, how we have adopted them, the income limits and how these impact, because there is the risk of duplicating measures to certain income classes and totally exclude the others”.
The middle class
The minister also spoke more broadly about tax reduction: “We intend to continue in the direction of intervening selectively and as fairly as possible and, in quotes, intelligently with regards to reducing the tax burden on certain categories: the middle class is not only important in economic terms but also in political terms, because we know perfectly well that when societies increase gaps, social and political tensions inevitably arise.”
“We must continue to promote the entrepreneurial spirit, closely linked to the investment dimension – he added -. An entrepreneur exists to the extent that he is involved in the corporate dimension, he continues to believe in it and invest in the long term. To promote the investment dimension we have pushed hard along two lines: hyper-depreciation, a simple and direct measure which concerns certain types of investments and which has proven to attract interest because, having continuity over time, it guarantees this type of security with respect to entrepreneurial decisions”.
The increase in interest rates
Speaking about the recent increase in interest rates by the ECB, introduced precisely to combat inflation and rising prices, Giorgetti explained that “in reality it translates into greater burdens for those who are in debt, both families and businesses and also for the State. In these moments when interest rates are increasing we understand how important it is to keep the debt under control, to have the possibility of managing to place it and therefore to have the trust of the markets and savers”.