The government fiscal policies: the new tax credit for dependent workers and the reduction of the tax wedge on wages
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Abstract
The aim of this note is to discuss the main changes in the Italian tax system recently introduced by the new government led by Matteo Renzi. We focus in particular on a new tax credit reserved to dependent workers, and put this reform in the context of the debate about the decline of the Italian economy and the reduction of the tax wedge on wages. Finally, the paper considers the impact of the new credit and the related shift of the personal income tax towards the «negative income tax» model.
Keywords
- Tax Credit
- Tax Wedge
- IRPEF
- IRAP
- Negative Income Tax
