Confindustria expresses the need for an incisive maneuver and warns: “at the moment it does not offer adequate answers to the problems and risks reported”. Among these, the risk of “losing production base”, with stagnant growth levels. During the hearing at the joint Budget Committees of the Chamber and Senate, the general director Maurizio Tarquini underlined that, while appreciating the attention to public accounts, it is essential to support investments and businesses.
Tarquini emphasized the need for “clear signals and courageous measures”, highlighting that the country is at a critical crossroads. Despite some reservations, Confindustria approves the structural reduction of taxation for incomes up to 40 thousand euros, which improves the temporary measure of the contribution wedge cut. However, it warns that the contribution to domestic demand could be compromised by a reorganization of deductible charges for taxpayers with incomes above 75 thousand euros.
Confindustria underlines the importance of giving a strong signal to make the country more attractive, relaunching the request for a rewarding Ires mechanism. Budget constraints can be respected by intervening “already only in the folds of the maneuver”. A proposed example is the merging of Irpef brackets from four to three, together with the cut in deductions for incomes above 75 thousand euros. These measures could lead to a small contribution and risk having negative macroeconomic effects. Furthermore, Tarquini suggests that income support measures could also be remodeled to free up resources for other chapters. This approach could recover about 1.7 billion euros.
“Every year we allocate only 50% of the proceeds from ETS auctions to the energy transition, taking away approximately 1.7 billion from the competitiveness of companies”, says Tarquini. With these considerations, Confindustria shows its determination in asking for significant tax reforms to address the current economic challenges.
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