Fees: how they change with the new Irpef rates

With the green light given to the tax transfer law, which was finalized in the Parliament and published in the Official Gazette, the tax reform continues at full speed. Less taxes on households and businesses (but not for everyone) and deals with tax evaders: This is the most important reform of the Meloni government and is based above all on confidence and optimism for one of the countries with the highest tax evasion. There are many simplifications and simplifications, but not for everyone: we’ve explained them in detail in this article. There is now 24 months for implementing decrees. However, the government can accelerate the next budget law and implement the first step of reform: reducing the income tax bracket from four to three.

As Prime Minister Giorgia Meloni predicted, the government’s will is to “significantly reduce the lowest echelon to include more workers”, in accordance with the principle of gradualism, as outlined in Article 5 of the fiscal authorization, thus avoiding any possible impeachment. unconstitutional And now, by the way, what’s going on? The next step to mark on the calendar is the start of the budget session at the end of September. On this occasion, the government will present the Update Note (Nadef) Def, which is the starting point of the 2024 budget law: at that moment, the effects of the reform on workers’ wages and pensions will be clearer from next year. But even now some assumptions can be made.

New personal income tax rates, thirteenth, flat tax and general changes in the relationship between taxpayers and the State: Parliament thus authorized the government in 23 articles to change the tax system. The tax code, valid for two years, set the limits of tax reform for now, such as the absence of additional fees for the state’s public finances or increases in the tax burden. The main goals of the reform include reducing personal income tax rates from four to three. Currently, Irpef has 4 rates:

• 23% up to 15,000 Euros,
• 25%, from 15,000,01 to 28,000 Euros;
• 35%, from 28,000,01 to 50,000 Euros;
• 43% over 50,000 Euros.

The new Irpef rates will be 3, in line with the “proportionate principle and the viewpoint of transitioning the system to a single tax rate, i.e. flat tax”. Personal income tax, in addition to the new income brackets and related tax rates, will be rearranged with new deductions and deductions according to the following parameters:

• The composition of the family nucleus;
• expenses incurred in raising children;
• disability;
• Protection of owned or leased household property;
• people’s health;
• Instructions;
• supplementary retirement;
• Energy efficiency and seismic risk reduction.

In reality, the new Irpef rates have been delayed to at least 2024. It will take 4 billion euros to reorganize Irpef, but we know that the resources will be scarce in the next budget law to approve existing measures. The premise added to the authorization law is always the same: “Without new or greater burdens for the public finances”. So what could it be and what would be the tangible effects on wages of lowering personal income tax rates? Excluding the hypothesis of combining the first two tranches at a single rate, it seems more likely that the threshold for the first tranche will now be increased from the current 15,000 euros to 25,000 euros. In this case, the annual increase in payroll for workers would reach 200 euros, with the Irpef rate holding steady at 23%.

As added in the last passage of the Chamber, Irpef reform will have to take into account other factors, such as the composition of the family nucleus, the presence of people with disabilities, or permanence in a home where energy efficiency studies are carried out: these are items that can generate additional savings at the tax return stage. Among the goals of the tax reform enacted by the Meloni government is the reduction of bonus taxes for workers’ accrued income throughout the year. However, when it comes to thirteenth salaries, the idea is to reduce the Irpef rate from 23% to 15% and save up to 80 euros in salary for each employee.

The reform could continue with the reduction of taxation on productivity premiums, in line with the intervention of the latest budget law, which reduced the rate in productivity premiums from 10% to 5% within the three thousand euro limit. It can also reach out to the so-called “tax-free zone”, an income threshold where the State does not impose any taxation. The idea is to standardize it for workers and retirees, with thresholds currently set at 8,174 euros and 8,500 euros respectively. Finally, tax reform may also interfere with the reduction of overtime taxes, but it is too early to know the effective resources the government can use to maneuver.

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