Low incomes, what the government is doing for those who earn little in the Irpef reform

What is the government doing for those who earn little, and therefore has a low income? The IRPEF reform consists in the passage from five to four rates and the reshaping of the deduction curve. All the details are not known yet, but according to the information released so far, higher incomes save the most.

The solidarity contribution against the expensive bills precisely to help the economically weaker sections of the population. According to the latest advances, the government’s goal is to preserve incomes of up to 28,000 euros. Another measure concerns the cut of contributions up to 35,000 euros. Let’s see what the government’s plan is to meet the real middle class, with incomes below 40,000 euros per year.

Low incomes, what the government is doing for those who earn little in the Irpef reform

As is currently structured the IRPEF reform income from 40,000 euros upwards (in short, not really the real middle class of the country). In fact, the maximum benefit occurs in the range between 40 and 45,000 euros, with 707 euros of savings per year. The initial idea behind the whole tax reform should be to help those incomes crushed by the tax burden on the one hand and yet not low enough to take full advantage of the bonus and deduction system.

According to the advances of the Sole24Ore the technicians of the Ministry of Economy are working on one safeguard clause just for the incomes between 15,000 and 28,000 euros, which populate the second income tax bracket. Given that the new four-rate IRPEF will also intervene on the no tax area, raising the threshold, the goal is to prevent the number of incompetent people from exponentially increasing with the rescheduling of deductions.

In fact, in the no tax area aid would be lost, such as deductions for dependent children (also remodeled with the arrival of the single allowance from March 2022) or discounts deriving from the use of building bonuses.

Furthermore, for employees with incomes up to € 15,000, there should also continue to be the Renzi bonus directly in the paycheck.

Low income and tax reform: aid against increases in bills

Saw the alarm on expensive bills, with risks increase up to 50%, all politicians agree on the importance of allocating resources to this to counter the price increases in gas and electricity users.

The idea being studied by the government was to freeze the IRPEF cut for incomes over 75,000 euros for one or two years. Draghi’s proposal would serve to find resources to allocate in order to reduce the impact of the increase in bill costs by introducing the solidarity contribution. The measure, however, was quashed in the Council of Ministers with the opposition of Lega, Fratelli d’Italia and Italia Viva.

To regroup the majority, it was then decided to create a fund against the expensive 300 million bills.

Medium-low incomes, cut in contributions for those who earn up to 35,000 euros per year

After the discussion with the unions (already dissatisfied with the setting of the IRPEF cut) the Government is also refining the proposal for the one-off cut of contributions with an allocation of 1.5 billion.

According to the former simulations, the savings would work like this:

  • for the income bracket up to 8,000 euros, the savings, gross of tax effects, would be 64 euros per year;
  • up to € 20,000, the cut in contributions translates into savings of € 160;
  • the benefit reaches 200 euros per year for incomes up to 25,000 euros;
  • up to 30,000 euros become 240 euros;
  • up to € 35,000 of income, savings are € 280 gross per year.

The decision, however, has not yet been taken: in the meantime, discussions with the trade unions continue.

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