The IRPEF reform envisaged by the maneuver “involves a reduction in the levy of about 264 euros per capita average (about one percent of disposable income) for 27.8 million taxpayers, equal to about two thirds of the total” This is what emerges from the report of the Parliamentary Budget Office “Revision of the personal income tax in the budget maneuver” published using the micro-simulation model of the Parliamentary Budget Office. Against the estimated average reduction, for about half of the beneficiaries the actual amount will be 185 euros, while one out of 8 taxpayers (12.5%) benefits for more than 500 euros.
The impact of the Irpef cut
In the chapter “impact assessment” it is explained that the total cost when fully operational is estimated at 7.3 billion and, therefore, “does not differ significantly from the assessments reported in the technical report (approximately 7 billion). The simulation was conducted “on a representative audience of heterogeneous taxpayers, it allows us to highlight a tax increase for about 370,000 individuals, on average equal to 188 euros per capita, for a total of 70 million in total”. This phenomenon occurs in general, explains the PU, “due to the misalignment between taxable income (on which the tax is determined) and total income (on which the deductions are calculated): for example the second, but not the the first includes leases subject to a flat rate tax ».
Upb: to managers more than workers
In fact, the study points out, executives will have a tax reduction of 368 euros, more than double, in absolute terms, the average of workers, equal to 162 euros, while clerks will have a tax cut of 266 euros. The study analyzes the impact of the reform also by looking not at individual taxpayers but at the family unit, clarifying that 20% of the poorest families are “substantially excluded” from benefits due to fiscal inadequacy. In practice, 50% of households in less favorable economic conditions “benefit from about a quarter of the total resources (about 1.9 billion), while the richest 10% benefit from more than a fifth of the resources (1.6 billion)” . 20% of households in less favorable economic conditions are in fact excluded from the scope of application of the personal income tax due to the high level of minimum taxable income and therefore are not involved in the revision of the personal income tax.
The text in the Chamber in the Chamber from 28 December for the definitive yes
After the go-ahead from the Senate, the budget law reaches the House today, 27 December. From 3 pm the Montecitorio Budget Commission will begin the examination of the maneuver at the referent. M5S deputy, Daniela Torto, was appointed rapporteur and the Commission has set the deadline for the presentation of the amendments for today at 6 pm. The text, however, prepares to an ok by the House without changes compared to the version already approved at Palazzo Madama. Text that is expected for tomorrow 28 December at 2 pm in the Chamber for general discussion, with voting beginning not before 6 pm. possibly also on 31.