Raising the no-tax area from 8 to 10 in annual income, allowing a 2,3 million more Italians – distributed among pensioners and employees – of don't pay income tax. Not even the municipal and regional surtaxes, which for low incomes weigh almost as much as the parent tax. The measure, which could form part of the new budget manoeuvre, is being studied more and more closely at Palazzo Chigi and seems to be convincing both from the point of view of numbers and from an electoral point of view. Let's start from the first.
Against a not excessive cost for the state coffers – 1,8 billion, according to initial projections – the extension of the no-tax area would bring a significant economic benefit to the pockets of many taxpayers. Workers and retirees with 9 thousand euros of income would find themselves in the pocket between 440 and 480 euros more each year, while for those approaching 10 thousand the gain would reach 740-820 euro.
On the political side, on the other hand, raising the bar of the no-tax area seems like a winning choice for several reasons. First of all it would allow for keep an old promise of the Renzi government, which in 2015 had ensured a reduction in personal income tax by the end of the term, completing a process that began with the cuts in Tasi, Imu and Ires. Furthermore, the measure would have a social value that can be easily spent in elections, because it would work in support of the poorest groups of the population, which they were not able to benefit from the 80 euro bonus. Not to mention that the intervention would be in continuity with another measure introduced by last year's maneuver, namely the raising of the no-tax area for pensioners to 8 thousand euros, the same share as for employees.
Conversely, a possible cancellation of personal income tax for all income brackets (up to 55 thousand euros) would cost a lot (about 4 billion more) against a much less significant benefit for taxpayers (just 185 euros for the medium high). It would not be worth it, neither from the point of view of numbers nor from an electoral point of view.
