Taxes and cuts in layoffs: Gualtieri’s cheerful program for Italy

As reported by La Verità (nomen omen), Gualtieri's trips to Europe were not very productive and brought home only zero point something for the Italian budget. After all, it is known that "Whoever makes a lamb, the wolf eats it" and Gualtieri, who knows as much about economics as Parietti, was sheep from the start.

According to the MEF, the updated 2021 deficit will reach 5.7%, while the further recourse authorized at the end of July is another 0.4%, so we are talking about crumbs compared to the 2020 GDP drop which is close to the two digits. After all, it is the ministry itself that informs us that, given the continuous submission to the EU and the inability to envisage paths other than those imposed by Domnbrovskis, and given that the Recovery will not be relevant (and in any case it would be a debt).

" In the three-year forecast, a marked reduction in net debt is expected under current legislation, which will drop to -5.7% of GDP in 2021, -4.1% of GDP in 2022 and -3.3% in 2023 "" The primary deficit will be gradually reabsorbed, settling at -2.4% of GDP in 2021, -0.9% in 2022 and -0.1% in 2023, thanks to the dynamics of revenues that are more sustained than that of expenditure primary ".

“More sustained revenue dynamics” means, translated into Italian, more taxes, and therefore the government aims to recover from 2021 to 2023 the 8% of taxes that it did not collect in 2020% due to crisis. this will be combined with the additional taxation for " Equity " wanted by the Commission, first on plastic, then on financial transactions, carbon and more, creating a devastating pro-cyclical fiscal strategy for businesses and families and preparatory to collective impoverishment " Alla Monti ”which will crush our productive and social system.

It is not over: we must also gradually demolish labor policies, but by pretending to do the exact opposite. The MEF informs us that. " The main objectives of budget policy for 2021-2023 are, in the short term, to support the workers and productive sectors most affected by the pandemic as long as the Covid-19 crisis persists ", therefore in a lyrical moment: "a broad program investment and reforms; a broad tax reform that improves the fairness, efficiency and transparency of the tax system, also reducing the tax burden on medium and low incomes, coordinating it with the introduction of a universal allowance for children; ensure a qualitative improvement of public finance, shifting resources towards the most appropriate uses to ensure an improvement in the well-being of citizens ”.

All beautiful, it is a pity that the layoffs planned for payment will drop from 26.6 billion in 2020 to 2.6 billion in 2021 to 700 million in 2023 . We pass to a tenth of the allocation in a year, as if 2021 were a perfect year, without any problems of industrial reconversion! Among other things, the little money allocated for VAT numbers will run out in 2020, and no help is foreseen for these categories in the coming years.

Therefore:

• or the MEF lies knowing that it is lying and sets unrealistic figures knowing that it will not respect them and that these will lead to further debt (and therefore taxes, given the European constraints);
• o the MEF is full of naive people who believe that the economy will recover with a record high jump in 2021 and hopes that everyone will be caught by the same superficiality

The solution could be somewhere in between: a cunning machine driven by an improvised minister. The problem is that the effects of the combined economic crisis + Green Deal + Budgetary constraints will be paid by the Italians, for whom very hard times are expected, a triumph of what Bini Smaghi called “The hardness of life”. Could all this be avoided? Not with the duo Conte – Gualtieri at the helm. Meanwhile, take the mask.

---

---

The article Taxes and cuts in layoffs: Gualtieri's cheerful program for Italy comes from ScenariEconomici.it .

---

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/tasse-e-tagli-alla-cassa-integrazione-lallegro-programma-di-gualteri-per-litalia/ on Wed, 07 Oct 2020 08:00:08 +0000.