Budget: cuts to tax on 13th-month bonuses are being considered. The League is pressing for changes to pensions

The League is stepping up pressure on early retirement, whilst Forza Italia is considering a total tax exemption for thirteenth-month bonuses, whilst Fratelli d’Italia is open to the idea – currently on the government’s agenda, with an eye on the elections – of starting with a one-off measure and then assessing whether to make it a permanent feature at a later date. Everyone agrees on extending the scope of the personal income tax (IRPEF) cut to that section of the middle class that has been somewhat neglected during the first four years of the parliamentary term. As is the case almost every year, work on the budget begins with taxes and pensions, with the parties also taking advantage of the stage provided by the CL Meeting to put forward their demands.

It is precisely from Rimini that the party based in Via Bellerio is reviving the issue of flexible retirement, which had been shelved over the past year. ‘It is unacceptable to have to work until the age of 67’ whilst there is talk of ‘implementing artificial intelligence in businesses’, according to the Under-Secretary for Labour, Claudio Durigon, who is also one of Matteo Salvini’s deputies. Furthermore, from January, the retirement age is set to rise by one month. Hence, “as the Lega, we are exploring the possibility of including flexible retirement provisions in the budget bill that would allow workers, with complete freedom of choice, to retire at 64”. This is an ambitious project – the details of which may well be revealed as early as the two-day ‘pre-Pontida’ event at the Officine Farneto in Rome on 8 and 9 September – which must take into account not only the available resources but also the overall sustainability of the pension system.

A new option to retire early would have an impact, but when asked about this at the Rimini Fair, the president of INPS, Gabriele Fava, merely stated that the institute would apply any guidelines from ‘the legislator’ ‘to the highest standard, as always’. Instead, the INPS president has reiterated his proposal for a ‘pension savings scheme’ for newborns – a ‘third pillar’ to help young people avoid ending up with derisory pensions in their old age. The idea has the backing of the Minister for Labour, Elvira Calderone, but to move from words to action, it will be necessary to ‘work step by step’, with experts and the government sitting down together to assess the feasibility of the measure.

Meanwhile, the idea of providing workers with more substantial thirteenth-month payments – perhaps as early as this Christmas – is gaining increasing support. The minimum proposal, explained FdI’s economic spokesperson, Marco Osnato, could cost half a billion (a 15 per cent tax cut for those with incomes of up to 15,000 euros), but efforts are being made to broaden the scope and increase the discount. Perhaps by launching it ‘on a trial basis to assess the results’ before possibly making the measure permanent, explain those working on the proposal. It is unlikely that FI’s proposal for ‘tax relief of up to 100 per cent’ will be adopted. The party led by Antonio Tajani, moreover, has already included in its list of priorities the abolition of vehicle tax and an ‘immediate cashback on healthcare costs’.

It is more likely, however, that there will be a cut in personal income tax (IRPEF) for incomes of up to 60,000 euros. At present, the reduced rate of 33 per cent applies to those earning up to 50,000 euros. Extending this to a wider group, according to Osnato’s calculations, would cost around 3 billion. Funding for healthcare would then also need to be increased. This is being called for by Minister Orazio Schillaci and also by the regional governors, starting with the governor of Lazio, Francesco Rocca, a supporter of Meloni. Because whilst it is all well and good to invest in ‘technologies and community centres’, ‘doctors, nurses and healthcare staff’ are needed to make them work.