The analyzes by Istat and the Bank of Italy have found that a large part of the resources dedicated to the Irpef cut in Maneuver will go to the families with the highest salaries among those affected. 85% of the funds will go to the 40% of the richest households, while only 15% will go to the remaining 60%.
The maximum tax advantages should reach 411 euros per year per family, while the minimum ones, for the 11 million families involved, will not exceed 201 euros. The Government reiterates that the measure aims to strengthen the middle class but the parliamentary budget office underlines that the law does not even manage to completely counteract the fiscal drain.
Istat and Bank of Italy analyze the maneuver: more money for the rich
During the hearings on the Maneuver in Parliament, Istat And Bank of Italy presented their reports, which focused mainly on the effect of the Irpef reform. The 2% cut in the rate in the central bracket, between 28,000 and 50,000 euros, is described as an intervention that “has no effect on inequalities” and which, on the contrary, tends to benefit families with high salaries.
The data presented by Istat in particular shows how the tax cut favors the richest:
- 85% of resources go to the 40% of families with the highest salaries;
- 2.3 million families will receive an average of 143 euros per year;
- the richest 20% of families will receive 411 euros per year;
- the poorest 20% of families will receive 201 euros per year.
In general, the intervention will have an effect of 230 euros on average per taxpayer and 276 euros per family per year. According to the Parliamentary Budget Office, various categories of taxpayers will receive very different benefits:
- 408 euros on average for managers;
- 123 euros on average for office workers;
- 55 euros on average for pensioners;
- 23 euros on average for workers.
Giorgetti defends the reduction of Irpef
The Minister of Economy and Finance Giancarlo Giorgetti defended the Government’s rule on Irpef, despite the criticism:
I have great respect for the subjects heard before me. I have the disadvantage of making decisions and not just being a professor. But the Government’s measure protects taxpayers with average incomes. In the last three years there has been a balanced intervention that takes into account all the measures.
The alarm about fiscal drainage
The Parliamentary Budget Office also analyzed the rule on the reduction of Irpef in light of the fiscal drainage of recent years. This is a phenomenon that occurs in progressive tax systems such as the Italian one in years when there is strong inflation.
The nominal salary increase, which aligns with that of prices, causes many taxpayers to climb into higher tax brackets. In this way, although the gross salary increases, the real one remains the same or, in some cases, decreases.
The PBO has verified that, with the Irpef reform implemented from 2021 onwards, this effect is only compensated for incomes up to 32 thousand euros. From 32 thousand to 45 thousand euros, however, an important part of the middle class to whom the 2026 IRPEF reform is aimed, the compensation is only partial.
