Just as the regional election campaign is on the go, the rating agency Standard & Poor’s has reminded again that Italian GDP in 2015 will only grow 0.4%. Despite the ECB’s Qe, the minibarils and the mini-dollars, the Italian economy remains chained to indicate that endogenous reforms mainly and not external effects that create an economic development.
A game that has a lot to do with fiscal-pressure and tax-burden. Matteo Renzi, who will have an easy victory in the regional elections except for Veneto, despite resistance from post-Communists in the Democratic party wants to reduce taxes. He had already done so with the 80 euros bonus and with the partial cancellation of Irap, which, however, is not enough, because there would be need of a clear discontinuity in the tax policy. The problem then, is that the taxes that he cut in the middle, will still pop up again just like mushrooms on the outskirts, thus watering down the effects on the expectations of businesses and consumers.
And so the GDP (gross domestic product) will stay stuck. The case of the regions is,from this perspective, quite emblematic. Some of those with high health care deficits and high debt stocks to be repaid, have brought in additional income tax to the most in 2015. The business case is Lazio, the region with the highest medical debtstocks. To compensate for the cuts decided by law of stability the additional personal income tax was increased by 3.33% (currently no exemption is still in effect for smaller income brackets) and in addition, Irap: Lazio-just to put it bluntly-companies are paying 4.82% against 3.9% at national level, then the tax burden for Irap will increase by 25%.
Traslation by Marina Stronati