The government's planned
tax-wedge cut will be for those excluded from an existing
80-euro monthly benefit, Economy MInister Roberto Gualtieri said
Tuesday.
Speaking at a brainstorming seminar of his centre-left
Democratic Party (PD), Gualtieri said "we want to start the
first tranche of the fiscal reform as soon as possible".
He said the government was still "making a technical
assessment of the scope" of the tax wedge cut.
But by the end of the month, he said, a cut would be
implemented that would "enable us to reduce taxes on up to 14
million workers, especially low-to-medium income households so
far excluded from the 80 euros".
Gualtieri said an enabling law on the fiscal reform would be
passed in April.
"Already in April an enabling law on the fiscal reform will
be passed," he said.
The government has vowed that its tax wedge cut will help
lower earners.
The tax wedge is defined as the ratio between the amount of
taxes paid by an average single worker (a single person at 100%
of average earnings) without children and the corresponding
total labour cost for the employer.
The average tax wedge measures the extent to which tax on
labour income discourages employment.
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