Particle.news
Download on the App Store

Audits Say Italy’s Irpef Cut Favors Higher Earners as Government Stands by Middle‑Income Relief

Following critical hearings by Istat, UPB, Bankitalia plus the Corte dei Conti, the budget bill moves to Senate amendments due in mid‑November.

Overview

  • Istat told lawmakers that over 85% of the resources from the Irpef rate cut accrue to the richest income quintiles, involving about 14 million taxpayers with an average benefit of roughly €230 per person and €276 per beneficiary family.
  • UPB estimates show stark disparities, with average gains of €408 for executives, €123 for clerical staff and €23 for manual workers, and about half of the total tax saving flowing to the 8% of taxpayers earning above €48,000.
  • Bank of Italy said the household income measures do not materially change inequality and warned the planned tax‑debt “rottamazione” would reduce compliance, projecting a €1.5 billion revenue loss in 2026 and €0.5 billion on average in the following two years.
  • The Corte dei Conti cautioned that raising the flat tax on short‑term rentals from 21% to 26% could push more lettings off the books, and noted the largest Irpef benefits concentrate among earners between €50,000 and €200,000.
  • Economy Minister Giancarlo Giorgetti defended the package as protecting middle incomes, citing coverage of about 32% of taxpayers with an average annual benefit near €218 (up to €440), as revenue data showed Jan–Sep tax receipts up 2% with Irpef down 2.1% and strong gains in capital‑income levies.