The Chamber has given the definitive go-ahead to the tax wedge cut, or the reduction of taxes on the salaries of employees. The final approval came with 254 votes in favour, no votes against and 131 abstentions.
In essence, it is a Irpef reduction which is due to holders of income from public or private employment, with the exclusion of pensions, and to holders of specific categories of income similar to that of employment.
The benefit is equal to 100 euros per month in payroll for incomes between 8.174 and 28.000 euros gross per year. Beyond this threshold it becomes one decreasing tax deduction linearly until zeroing when an income level equal to is reached 40.000 €.
For now, the tax deduction is temporary, as it applies only to services rendered in the six-month period from 31 July to 2020 December XNUMX, in view of a structural review of the deduction system.
The supplementary treatment is determined on the basis of the working days, with reference to the services rendered in this second semester.
The decree converted to Montecitorio implements a rule contained in the Budget Law, which has allocated 3 billion for 2020 and 5 billion for 2021 to reduce the tax wedge. The maximum amount that can be collected is therefore equal to 600 euros in 2020 e 1.200 euros in 2021.
The new bonus it does not add up to the 80 euros granted by the Renzi government (which are effectively abolished from July), but strengthens that intervention and extends it to a much wider audience (from 11,7 to 16 million workers).
Finally, the doubling of the installments from 4 to 8 in the event of repayment for both the bonus and the deduction has been introduced, while the threshold of 60 euros above which payment in installments can be requested remains confirmed.
READ MORE: Tax wedge 2020: bonuses, deductions, income. Cutting rules
