Saturday, April 19, 2014

Will the F-35 "pay" for tax cuts in Italy?

I don't believe in "paying" for tax cuts. You just reduce government. Close whole departments if needed.

In this case though the F-35 may end up paying for tax cuts in Italy.

(Reuters) - Italian Prime Minister Matteo Renzi on Friday cut taxes for 10 million low earners to try to boost household spending after a two-year recession, making good on a promise he made after taking office two months ago.

Renzi's cabinet passed a decree to reduce taxes for those earning between 8,000 and 26,000 euros a year by about 80 euros per month, starting next month.

The 6.9 billion euros in tax cuts will be funded by a mix of spending reductions, one-off windfalls and a "review" of spending on Lockheed Martin's F-35 fighter jet, Renzi told reporters.

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