Who earns the most from Irpef reform? Second an analysis by the Parliamentary Budget Office, the largest tax savings (765 €) will be in the taxable income range between 42 and 54 thousand euros. To be clear, those who earn between 3.500 and 4.500 euros gross per month.
Above this band (which includes 3,3% of the audience and to which 14,1% of resources are allocated) the advantage decreases: 490 euros between 54 and 78 thousand euros of income, 268 euros between 78 and 102 thousand euro and 269 euros over 102 thousand euro.
As for the lowest income bracket, between 6 and 12 thousand euro, the annual saving is 64 €, which rise to 229 between 12 and 18 thousand euros thanks to the increase in deductions.
Lower and middle income earners, on the other hand, will get less: 204 euros between 18 thousand and 24 thousand euro, 155 euros between 24 thousand and 30 thousand euro and 330 euros between 30 thousand and 42 thousand euro.
Overall, among those who pay personal income tax, half will collect an annual benefit of less than 185 euros, while for 12,5% the savings will exceed 500 euros.
The reform in the pipeline – which will begin to make itself felt on pensions and payroll starting in March – provides for the reduction of the brackets from five to four, the cut of the two central rates (from 27 to 25% on the 15-28 euro income bracket and from 38 to 35% on the next one, from 28 to 50 thousand euros), as well as a profound revision of the deduction system.
The intervention is worth a total of seven billion euros and – again according to the Upb – 50 billion will be allocated to the poorest 1,9% of families who pay Irpef, while the richest 10% will receive 1,6 billion.
Then there are the incompetents, i.e. 20% of all Italian families, who do not earn enough to pay Irpef and therefore will not obtain any benefit from the reform. “If future social policies want to support the incomes of the poorest families – explains the Upb – they will have to rely on instruments other than personal income tax, such as direct monetary transfers or negative tax mechanisms”.
