This week: a decreased total tax rate on SMEs back to 2011 levels, Renzi’s and Toti’s new parties and their consequences, majority splits in two important votes.

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One difficult thing for policy and law makers is measuring the impact of their actions.
Thanks to some tax measures introduced by the League in the last Financial Bill and the Growth Decree, i.e. the first portion of flat tax and the deductibility from Corporate Income Tax of property taxes on industrial buildings, the total tax rate on SMEs decreased of 2,4% according to CNA. The CNA is one of the associations of Italian Small Businesses and its observatory released a report analyzing tax burdens town by town because a part of the fiscal policies are devolved to local authorities, for example the above said property tax called IMU.

Many of you are asking what changes with the creation of the new party of Renzi within the parliament.
Other than the fact that a new party with a DNA significantly different than the one of the Conte Bis Government, thing that would reasonably oblige the Prime Minister to ask for another Confidence Vote because the one that passed was on a different program, Italia Viva formed a group in the lower house and it’s going to form one in the Senate.
A group within for example the lower house has a certain degree of discretionality: according to the Chamber of Deputies regulation, article 14, a group is granted with a Budget; according to articles 23 and on, the chairmen of the groups participate to the groups’ chairmen conference together with the Presidency of the Chamber to define the planning and chose the subjects to discuss. The planning is approved with the vote of the chairmen representing at least 75% of the MPs.
You can definitely see how influential can be political groups with their own representation within the parliament.
In the case of “Cambiamo!”, freshly founded party, Mr. Toti (former Forza Italia member) couldn’t reach the minimum number of MPs or Senators to form a group within one of the two houses.
Its MPs and senators are therefore sharing uncomfortable seats within the so called “Mixed groups”, technical groups formed by people with very heterogeneous political views, with whom they have to continuously negotiate their institutional presence.

In a single week the new majority got divided over two votes: the first one in the RAI (our public television) vigilance committee and the second one in a secret vote in the plenary session about the house arrests of a Forza Italia MP.
Meanwhile other than Italia Viva and Cambiamo! Some other MPs and senators left, or are preparing to leave their original groups of election.

I bet the next week will be also interesting, especially because the Eurozone Business Survey and the Germany consumer morale will be released.

See you soon on giuliocentemero.com!

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