Italian Beef: With Higher-Taxes Populists Like This, Who Needs Socialists?

via businessinsider:

  • Italy faces a fresh budget fight just months after ending a near six-month saga surrounding spending, after media reports in the country suggested the coalition government could move to raise taxes.
  • Government officials moved to squash the rumors. Finance Minister Giovanni Tria described those responsible for reports of higher taxes as “follies and speculations.”
  • “They’re all crazy, not only because we aren’t talking about it, but because it would be wrong to so this from the standpoint of economic policy,” Tria said.

Italy faces a fresh budget row just months after ending a near six-month saga surrounding spending, after media reports in the country suggested the coalition government could move to raise taxes.

The purported move, which would see value-added-tax increased to bring in more government revenue, would be hugely controversial given that the country slipped into a recession at the end of last year.

Output in Europe’s fourth-largest economy contracted by 0.2% in the fourth quarter, on the heels of a 0.1% drop in the quarter before that.

Any increase would be made even more divisive by the fact that both parties in the coalition — the Five Star Movement and the Northern League — campaigned on platforms of keep taxation levels flat for the majority of Italians at last year’s elections.

 

328 views