Taxes, government spending and increasing income: consumption declining … – Florence Post

Taxes, government spending and increasing income: consumption declining … – Florence Post

The Prime Minister, Matthew Renzi

Matteo Renzi, the boast of the achievements of his government (actually scarce) pointed out two main factors: a) the bonus from 80 EUR yes needed to raise more reditclaims downs, but had mainly aims to boost consumption; b) his government was the first to lower taxes.

Istat, the National Institute of Statistics, than having to manipulate numbers do not make policy, offered a complete turnaround. The final analysis of the Institute tells us in fact that the famous bonus of 80 euro is finished on the current account of the Italians and was not spent in stores. In confirmation of what they had already said merchant associations. According to data from the third quarter of 2014, in fact, the income available has grown, but the consumption have remained outside the goal. Also in the third quarter of 2014, the tax burden has increased, not decreased.

Last, but not least, our Public Accounts have deteriorated, which means it was not put a stop to the spending. The ratio of deficit to GDP rose again and reached 3.5%, thus breached the 3% limit imposed by Europe.

Here is a summary, point to point, the ISTAT.

INCOME – On the side of consumers Istat indicates that the disposable income of households has increased in the third quarter by 1.8% over the quarter previous year and 1.4% over the corresponding period of 2013. It also grows the purchasing power that, given the trend in prices, rose 1.9% in the third quarter of 2014 compared to the previous quarter, and 1.5% compared to the third quarter of 2013.

SHOPPING – Household spending for final consumption, in current values, however, remains unchanged from the previous quarter and in slight increase (+ 0.4%) compared to the corresponding period of 2013.

SAVINGS – As for the propensity to save of households, measured on a seasonally adjusted basis, amounted to 10.8% in the third quarter of 2014, an increase of 1.6 percentage points from the previous quarter and by 0.9 percentage points compared to the same quarter of 2013

PUBLIC ACCOUNTS – The ratio of deficit to GDP in the latter part of last year rose by 0.2 percentage points over the same period of 2013 and reached 3.5%. In the first nine months of 2014 the ratio was 3.7%, worst of 0.3 percentage points compared to that measured in the corresponding quarter of 2013. The government’s target was 3% within the parameters EU for 2014 .

TAXES – Salt also the tax burden that, again in the third quarter of 2014, stood at 40.9%, 0.7 percentage points higher than the same period of 2013. In the first nine months of last year however the tax burden has fallen by 0.2 percentage points over the same period of 2013. It improves slightly the primary balance (debt net of interest expense) that was positive, with a ‘impact on GDP of 0.8%, down 0.5 percentage points compared to 1.3% in the third quarter of 2013. In the first 9 months of the primary balance was positive and amounted to 0.9% of GDP compared with 1.4% in the same period of 2013.

Compared to the ads and promises of rottamatore almost looks like a war report, a complete debacle. None of the objectives of the Government on the important themes considered above has been achieved, indeed. Surely Istat come to the right in the list of owls, which now stretches beyond measure .

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