Unimpresa estimates savings up to €1,440, but not for everyone
The proposal under political debate
The plan to cut the Irpef tax rate from 35% to 33% and extend the intermediate bracket up to €60,000 is at the center of Italy’s upcoming budget law. According to Unimpresa’s research center, the measure would cost between €3.5 and €4 billion annually, a significant figure in light of EU budget constraints and the need to support consumption and investments.
Real savings for taxpayers
Unimpresa’s simulations highlight the following benefits:
- €30,000 gross income: €40 per year.
- €40,000 gross income: €240 per year (around €20/month).
- €50,000 gross income: €440 per year.
- €60,000 gross income: €1,440 per year, or about €120 per month.
For incomes above €60,000, such as €70,000, the maximum benefit remains at €1,440, since the cut applies only up to €60,000.
A reform that favors middle-high incomes
The strongest benefits are concentrated among taxpayers earning between €50,000 and €60,000. According to Paolo Longobardi, president of Unimpresa, the measure “addresses the real discontent of the middle class, long burdened by one of the highest tax pressures in Europe.” Still, without broader reforms, this risk being a partial step with limited impact on Italy’s overall tax competitiveness.
Redistribution and economic effects
From a redistributive standpoint, the measure does not reduce inequality: higher earners gain the most in absolute terms. Furthermore, the economic multiplier may be limited, since middle-high incomes are more likely to save rather than spend their additional disposable income, unlike lower incomes which would fuel consumption more directly.