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

The League is stepping up the pressure on early retirement, whilst Forza Italia is considering a total tax exemption on 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 permanent at a later date. Everyone agrees on extending the scope of the IRPEF tax 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 platform 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’, stated Claudio Durigon, Under-Secretary of State for Labour, 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 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 from the labour market would have an impact, but the president of INPS, Gabriele Fava, when asked about this at the Rimini Fair, merely stated that the institute would apply any guidelines from ‘the legislator’ ‘to the highest standard, as always’. Instead, the INPS chairman has reiterated his proposal for a ‘pension savings scheme’ for newborns – a ‘third pillar’ to help young people avoid ending up with derisory pensions when they retire. The idea has the backing of the Minister for Labour, Elvira Calderone, but to turn words into 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 bonuses – 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 reduction. Perhaps by launching it ‘on a trial basis to assess the results’ before potentially making the measure permanent, explain those working on the proposal. It is unlikely that the proposal put forward by FI for a ‘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 road 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, as Osnato calculated, 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 very well to invest in ‘technologies and community centres’, what is really needed are ‘doctors, nurses and healthcare staff’ to make them work.