Banks are getting giant windfalls now. Italy has a solution that we could never implement as Financial Institutions have extra profits to pay politicians.
Italy’s government approved a 40% tax on banks’ windfall profits for 2023. The country’s major banks have benefited from higher interest rates, with several recently reporting bumper earnings. Matteo Salvini, the deputy prime minister, said that the money would be used to cut taxes and offer support to mortgage holders. Shares in Italian lenders fell following the news.