The Minister of Economy Giancarlo Giorgetti seems to want to focus on a proposal as ambitious as it is thorny, with the aim of supporting the birth rate and improving Italy’s economic competitiveness. The inspiration, in part, comes from Mario Draghi’s recent report on European competitiveness, delivered to the President of the European Commission Ursula von der Leyen. A document that, according to rumors in Il Foglio, was welcomed positively by Giorgetti himself. The minister’s idea, which could become the cornerstone of the next Stability Law, concerns a reform of tax deductions aimed at supporting large families. The project – writes Claudio Cerasa – plans to offer more significant tax relief to those who have more than one child, regardless of income, while reducing the benefits for those who do not have any.
The heart of the proposal is a sort of “family quotient”, which would allow those with a larger family to pay less taxes. The measure, estimated to cost between five and six billion euros, intends to attribute a real “social value” to families that contribute to the demographic growth of the country. This is not the first time that Giorgetti has addressed the issue. A year ago, he had already put forward the idea of exempting families with more than two children from taxes, although without success. Now, however, the intention is to push forward with the project more decisively, convinced that the issue of the declining birth rate is not only a social problem, but a real economic emergency. For Giorgetti, the debate on the declining birth rate is crucial. Those who do not recognize the importance of the issue, according to him, do not understand that it is a tragedy that threatens the economic future of the country. The challenge of the Minister of Economy and Finance has been launched: less taxes for those who have children.
#Giorgettis #billion #plan #Tempo
2024-09-12 08:04:33
Italy birth rate
Table of Contents
The Declining Birth Rate in Italy: A Growing Concern for the Economy
Italy is facing a demographic crisis, with a declining birth rate that is threatening the country’s economic future. The government, led by Minister of Economy Giancarlo Giorgetti, is taking measures to address the issue, inspired by reports from Mario Draghi and Hungary’s successful approach to boosting birth rates.
A “Family Quotient” to Support Large Families
Giorgetti’s proposal, estimated to cost between five and six billion euros, aims to introduce a “family quotient” that would allow families with more than one child to pay less taxes, regardless of income. This measure is intended to attribute a real “social value” to families that contribute to the demographic growth of the country. The idea is not new, as Giorgetti had already put forward a similar proposal a year ago, but this time, he is determined to push it forward more decisively [[3]].
Following Hungary’s Lead
Italy is not the only country concerned about its declining birth rate. Other European countries, such as France and Finland, are also searching for ways to incentivize people to have more children, including tax credits and increased social benefits [[3]]. Hungary, in particular, has been successful in boosting its birth rate through investment, making it a model for Italy to follow [[2]].
A Demographic Winter
The declining birth rate in Italy is a pressing issue, with far-reaching economic consequences. The country’s birth rate has been steadily decreasing, leading to what is being called a ”demographic winter” [[1]]. This phenomenon is not only a social problem but also an economic emergency that threatens the country’s future.
The Economic Consequences
The economic consequences of a declining birth rate are severe. With an aging population and a shrinking workforce, Italy’s economy is at risk of stagnation. The government is under pressure to find solutions to this crisis, and Giorgetti’s proposal is seen as a crucial step in the right direction.
Conclusion
Italy’s declining birth rate is a pressing issue that requires immediate attention. The government’s proposal to introduce a “family quotient” is a step in the right direction, and Italy can learn from Hungary’s successful approach to boosting birth rates. By supporting large families and incentivizing people to have more children, Italy can address its demographic crisis and ensure a brighter economic future.
References:
<a href="https://www.lemonde.fr/en/international/article/2023/07/09/in-italy-giorgia-meloni-is-faced-with-a-demographic-winter60469864.html”>[1]
Italy’s Tax Reform: A Bid to Boost Birth Rate and Economic Competitiveness
The Italian government, led by Minister of Economy Giancarlo Giorgetti, is gearing up to implement a comprehensive tax reform aimed at supporting large families and improving the country’s economic competitiveness. The proposed reform, inspired by Mario Draghi’s report on European competitiveness, seeks to introduce a “family quotient” that would allow families with more dependent children to pay less taxes.
According to reports, the project plans to offer more significant tax relief to families with more than one child, regardless of income, while reducing the benefits for those without children [[3]]. This move is estimated to cost between five and six billion euros and is intended to attribute a real “social value” to families that contribute to the demographic growth of the country.
Giorgetti has been a long-time advocate for promoting family growth and addressing the issue of declining birth rates in Italy. A year ago, he proposed exempting families with more than two children from taxes, although the idea didn’t gain traction at the time. This time around, however, the minister is more determined to push forward with the project, convinced that the declining birth rate is not only a social problem but a real economic emergency [[1]].
The tax reform is part of the government’s broader effort to reduce the tax burden on citizens. According to the 2023 Economic and Financial Document, the government aims to bring down the tax burden from 43.3% in 2023 to 42.7% by 2026 [[2]]. This reduction in taxes is expected to boost economic growth and make Italy more competitive in the European market.
Giorgetti’s proposal has sparked a lively debate on the importance of addressing the declining birth rate in Italy. The minister believes that those who do not recognize the issue do not understand the gravity of the situation, which threatens the economic future of the country. By offering tax relief to large families, the government hopes to encourage couples to have more children, thereby reversing the declining birth rate trend.
The tax reform is a crucial step towards promoting family growth, economic competitiveness, and social welfare in Italy. If successful, it could pave the way for other European countries to follow suit and address their own declining birth rate issues.
Sources:
[1] https://www.agenzianova.com/en/news/governo-giorgetti-la-riforma-fiscale-va-avanti-a-tempo-di-record/
[2] https://www.mef.gov.it/en/inevidenza/2023-Economic-and-Financial-Document-approved-by-Minister-Giorgetti-responsible-ambition-for-a-new-growth-phase/
[3] https://italynews.online/news-from-italy-in-english/proposed-changes-to-tax-deductions-to-support-families/
