A big step backwards that is surprising, because in the 2027 Budget, barring any surprises, it seems that the Irpef cut for incomes above 50,000 euros will be skipped. There has been a lot of talk in recent weeks about the possibility of extending the 33% rate up to 55,000 euros. An operation that would have cost around 1.2 billion euros.
All set aside in the new draft of the budget bill, according to what emerged following the last summit at Palazzo Chigi. The text will then be examined by the Council of Ministers today, Wednesday 28 October 2026.
Considering the limited resources, the government focuses interventions on some priorities:
- fund for flexibility when leaving work;
- tax relief on thirteenth wages for the lowest incomes;
- tax package for young people;
- new aid for working mothers and businesses;
- structural stop to car tax.
Why the Irpef cut for the middle class is skipped
The intervention under study would have expanded the Irpef bracket with a rate of 33%, currently applied to incomes up to 50,000 euros, bringing it up to 55,000 euros. In this way, a part of the income currently taxed at 43% would be transferred to the lower rate. A clear advantage for what is defined as the middle class.
However, the calculated cost was estimated to be excessive, equal to approximately 1.2 billion euros, as mentioned. The hypothesis, after being set aside in recent weeks, was once again under discussion, but now it seems to no longer have any basis on which to stand.
The scarcity of resources weighs heavily. It is no coincidence that the Minister of Economy Giancarlo Giorgetti has returned to talking about a “short blanket”. In fact, he explained that with the Budget law we will try to do “what is possible in this situation”, because the proposals coming from parties and categories “are much higher than what is available in a budget”.
The youth package: mini Irpef, flat tax and no tax area
As mentioned, the key measures will be others. Space for a package of tax measures dedicated to younger people. Among the hypotheses there is a so-called mini Irpef for workers under 30 with low incomes. All with a rate yet to be established and a flat tax of 5% for new hires under 35.
Also in this case, the income ceiling for accessing the benefits is still being evaluated and will depend on the resources available. An extension of the no tax area for under 25s is also being studied.
The measures also look at hiring companies. The government would aim to strengthen the maxi deductions on the cost of labor for new hires: from the current 130% it would rise to 140% for young people and 180% for young mothers, so as to make the entry of these categories into the world of work more convenient.
