|Italy Trims Austerity Plans, Removes Tax Hike Proposal On High Earners, To Pursue Tax Cheats Instead|
|Reuters via ZeroHedge, 29/08/2011 (traduire en Français )|
ZH : Italy's brief flirt with Austerity, disclosed on August 12, lasted all of 2 weeks. As Reuters reports, following a 7 hour meeting between FinMin Tremonti who has been portrayed by the media as the primary reason why Italy has recently become the target of bond vigilantes, and which in turn was forced to establish some token measures of austerity, and PM Berlusconi, the most provocative measure of the "austerity" packet have been dropped, namely the solidarity tax, which would see new taxes on high earners, as well as austerity imposed on local budgets, and instead will be replaced with new 'tax evasion' avoidance schemes.
Reuters : The Italian government will drop a proposed tax on high earners from an austerity package going through parliament and replace it with other measures, Prime Minister Silvio Berlusconi's office said on Monday.
A statement issued after a meeting between Berlusconi and senior ministers from his coalition government made no mention of any increase in Value Added Tax, which had been widely mooted in the media.
The so-called "solidarity tax" on incomes above 90,000 euros will be replaced by new tax measures to combat tax evasion and by reduction in tax breaks for cooperatives, the statement said.
But it was vague on the details.
The note did not give details of how the government would compensate for the lost deficit reduction from today’s changes.