Cutting taxes on work: yes, but how? This is the puzzle that the government and Parliament will have to solve in the coming weeks. In the version approved by the Council of Ministers, the budget law limits itself to allocating eight billion for the fiscal chapter, without specifying the distribution of resources among the various expenditure chapters.
It will therefore be up to the House and the Senate to decide how much money to invest in remodulation of Irpef and how many to allocate toabolition of IRAP, which should be merged with IRES. Therefore, it is not a question of establishing only the extent of the cut in the tax wedge, but also who will earn the most: whether workers, with the increase in net payroll, or businesses, with the reduction of the tax burden.
On the personal income tax side, the rumors speak of a 38% rate cut, that relating to the bracket between 28 thousand and 55 thousand euros of annual income. According to two simulations – created by Labor Consultants and the Ungdcec Foundation – a reduction of two percentage points (therefore to 36%) would bring an advantage of 340 euros per year for those in the middle of the bracket (in the hypothesised case, an income of 45 thousand euros). The benefit would rise to 540 euros for those above (the reference is set at 75 thousand euros).
Higher incomes would have an advantage because the rate would be discounted on the entire income bracket (from 28 thousand to 55 thousand euros), while for those who are in the middle of the ford the game would work only partially (in the case analysed, from 28 thousand to 45 thousand euros). For the same reason, those with an income of less than 28 euros would gain nothing from such a cut in income tax.
The Budget law, however, aims to lighten the tax burden also through "an organic revision of the system of deductions for employee income and supplementary treatment", i.e. the bonus of 80 euros, which later increased to 100.
