€2 billion for wages and nearly €3.5 billion over three years for families and the fight against poverty. Another €9 billion over the three-year period will be allocated to lowering the second income tax bracket from 35% to 33%, as well as new funding for healthcare and extending the ban on plastic and the sugar tax. These are some of the new measures outlined to the Council of Ministers by Minister of Economy and Finance Giancarlo Giorgetti.

Here, in brief, are the key points of the €18 billion maneuver.

SALARIES - To facilitate wage adjustment to the cost of living, the budget law allocates approximately €2 billion for 2026.

FAMILY - The package—which also includes the ISEE reform —provided approximately €3.5 billion over the three-year period for families and the fight against poverty. It also includes the confirmation, with a possible extension if resources allow, of three months of optional parental leave at 80% , as well as a social security package with state support for newborns.

ISEE - In order to access certain subsidized benefits , a revision of the rules for calculating the ISEE is introduced, which intervenes on the value of the house (probably 75,000 euros of cadastral value) and on the equivalence scales, with an overall impact of almost 500 million euros per year.

Personal Income Tax (IRPEF) - The central measure of the new budget law targets the middle class, lowering the personal income tax bracket from 35% to 33%. The measure will cost €9 billion over three years. The target group is expected to be those with incomes between €28,000 and €50,000, and the benefit would reach a maximum of €440 per year.

BUSINESSES - The super-depreciation program to support businesses and innovation is back: the total value is €4 billion. A three-year tax credit is available for businesses in the Special Economic Zones (SEZs) and the refinancing of the New Sabatini program is planned.

PLASTIC AND SUGAR TAX EXTENSION - Another year for businesses without the plastic and sugar taxes. The two taxes are frozen through 2026.

HOME - The renovation bonus for first homes has been confirmed for next year at 50% and for second homes at 36%.

HEALTH - To the refinancing envisaged last year by the budget law, amounting to over 5 billion for 2026, 5.7 billion for 2027 and almost 7 billion for 2028, are added 2.4 billion euros for 2026 and 2.65 billion for the following two years.

PENSIONS - A freeze on the pension-related life expectancy increase, effective starting in 2027, is possible, but rumors suggest it would be selective, excluding certain categories such as those in strenuous and early-stage jobs. Alternatively, the possibility of a one-month increase per year until 2029 has emerged.

SCRAPPING - Work is still underway on the details of the tax amnesty, which should cover the entire year 2023. The most popular option remains 108 installments over 9 years, excluding those who have never filed a tax return.

BANKS AND INSURERS - The contribution that could come from banks and insurance companies in view of the budget is expected to amount to approximately €4.5 billion. Additional funding would come from the spending review in ministries as well as from the effects of the remodeling of the National Recovery and Resilience Plan (NRRP).

(Unioneonline)

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