Single family allowance for children since January, but 10 billion must be found. This is what it’s worth

3 ‘reading

There is a piece of the IRPEF reform in which the four parties of the majority and those of the opposition could converge: it is the single and universal subsidy for children. The bill to present it, on July 21, received the approval of the Chamber with 452 votes in favor of the 453 deputies present. In practice, it is a monthly payment of money (or a tax credit) that families must obtain for each child, from the seventh month of pregnancy to the twenty-first year of age. And not only to the salaried, but also to the self-employed, self-employed, incompetent, unemployed.

It is a tax reform because a third of the necessary resources would come from the funds currently allocated to personal income tax deductions for dependent children (which amount to 8,200 million, of the 25.9 that are considered necessary for the single allocation to function fully regime). And it is also so because, among the other resources that the Government seeks for the new instrument, two billion should be allocated to lighten the tax wedge charged to companies, which today partially finance checks to the family unit: another benefit that should flow into the new single check. In fact, the objectives would also include the financing of child allowances in full from the general taxation.

The moment of approval

September will be a decisive month for the single check: the bill issued by Montecitorio must be approved by the Senate, where it was attached to the Labor Commission (AS 1892). However, as it is a delegated bill, it must be followed by the executive decrees, by the ministers of family, labor and the economy. The parliamentary route of the single check is closely linked to that of the 2021 budget law, because the scope of the intervention will depend on the funds available.

The resource node

The single allowance will be partially financed with the progressive overcoming or elimination of existing measures, such as allowances per family unit and withholdings for dependent children, the baby bonus, the birth bonus. In total, a treasure of 15 billion that could be drawn.

However, to finance the measure, it is estimated that another ten billion are needed. In part, provide additional resources to those who already have family support services and expand the range of beneficiaries. In part, then, to ensure that no family, with the transition from the old to the new structure, receives fewer resources than today. Finally, in part to reduce the tax wedge for companies.