The Meloni government’s vision of the tax authorities takes shape and the approval of the enabling law on the tax reform traces the course, among other things, towards the application of a personal income tax the only one that causes discussion, by virtue of thearticle 53 of the Constitution which speaks of progressive taxation.
Beyond the controversies that, however important and justified they will be faced in the future, what can be estimated today is the impact that the reform of personal income tax rates will affect salaries.
A revision that starts from the form and goes into the substance, so as to reduce the four personal income tax brackets to threealready reduced by one unit by the Draghi government.
Irpef brackets
After addressing the dialectical issues of tax reform (which we will discuss later), the pressure of Irpef will change in a more than appreciable way. The current tiers are:
withdrawal Irpef of 23% on income up to 15,000 Euros, 25% Irpef levy on income from 15.001 a 28.000 eurowithdrawal Irpef of 35% on income from 28,001 to 50,000 euros Irpef levy of 43% on income higher than 50,000 euros
The reduction in the number of brackets and the pressure they exert on incomes, provides for a merger which, according to the hypotheses of the State Accounting Office, will provide various possible scenarios.
The first of these scenarios looks like this:
Irpef levy of 23% on income up to €15,000 Irpef levy of 27% on income from 15,001 to 50,000 eurosIrpef levy of 43% on higher incomes
The second scenario is this:
Irpef levy of 20% on income up to €28,000 Irpef levy of 35% on income from 28,001 to 50,000 eurosIrpef levy of 43% on higher incomes
For greater clarity, we have simulated the benefits by income bracket.
The simulations
Evaluating both scenarios, the expected result is the following:
In the first hypothesis, the beneficiaries of the Irpef tax review would be incomes from 35,000 euros upwards while, albeit with different results, the second hypothesis would benefit any income bracketalthough those exceeding 50,000 euros would be penalized but still subjected to a lower tax burden than that in force today.
It should be emphasized that under consideration there are further hypotheses but the two mentioned are the ones most accredited by the State Accounting Office. In any case, as it appears from the simulations, the highest incomes would benefit above all from this revision, but the government is also thinking of a remodeling of the No tax Areai.e. the income threshold below which the Irpef tax burden is not applied.
It is currently set at a rate of 8,174 euros for employees, 8,500 euros for pensioners and 5,500 euros for self-employed workers. Employee income up to 15,000 euros per year also benefits from the supplementary treatment of 1,200 euros.
The No tax Area threshold could be raised to 8,500 euros yearly for all but, also in this case, confirmations are awaited.
Towards the single rate
To go towards the ultimate goal of the government it will be necessary to adjust the tax expenditure, i.e. the system of deductions and deductions that lighten the tax burden. This means that the lower tax burden exerted by Irpef could in part be reabsorbed by the reduction of deductible items from gross income but, even in this case, we are moving in the world of hypotheses because there is no reliable information.
It should also be emphasized that, again on the dialectical level, the government is thinking of granting employees the possibility already available to the self-employed to deduct certain expenses related to the exercise of their respective professional activities from their income.
2023-08-16 21:07:00
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