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HomeNewsCashback, Draghi suspended it because it "favors high incomes"

Cashback, Draghi suspended it because it “favors high incomes”




The suspension of the State Cashback is effective from today, on the day in which the second semester should have started. The AGI Agency has published some indiscretions on the reasons that prompted Prime Minister Mario Draghi to make the decision. According to what was said, Draghi would have told the parties that ” the measure risks accentuating the inequality between incomes, favoring the richest families, with a presumably lower propensity to consume, causing a multiplicative effect on GDP that is not sufficiently significant in relation to the cost of the measure “.Criticisms have come from the 5 Star Movement, which would have done everything to keep the program on. Draghi, however, would have reiterated that ” cashback has a regressive character and is intended to direct resources towards the categories and areas of the country in better economic conditions “. A striking example is that of Northern Italy, where the concentration of electronic payment methods is higher than in the South. Specifically in large cities by a householder under the age of 65, medium-high income and economic condition different from that of an unemployed person or worker. Furthermore, according to Draghi, the cashback would not have brought any evidence on the greater propensity of Italians to use electronic payment methods, as 73% of families already use them and spend more than the platform envisaged by the program by card. Obviously, the choice is also dictated by economic needs: the measure weighs 4.75 billion euros on the state budget, and would not have brought great benefits in terms of combating tax evasion. On the contrary, electronic transactions would have grown in sectors where evasion was already low.


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