Adnkronos (Adnkronos) – The government is sticking to its plan to cut middle-class taxes and is evaluating alternative ways to contain costs. Postponed last year, the plan to reduce personal income tax from 45% to 33% for incomes between €50 and €60 would cost €2,7 billion. This is too much for the coffers of a country that cannot leverage its deficit due to the EU budget process and is engaged in a tug-of-war with the banks over a contribution of over €5 billion to finance part of the budget.
Among the options raised by the majority to secure one of the legislature's flagship measures is restricting the eligible beneficiaries in 2027 to those with incomes up to €55, which would halve the burden to approximately €1,3 billion. In 2028, election results permitting, the pool would be expanded to include incomes up to €60.
To date, the personal income tax cut of up to €50 affects nearly 13 million taxpayers (employees and retirees), with a maximum annual savings of up to €440, for a monthly contribution of nearly €37. Extending the cut to incomes up to €55 expands the group to 3 million new beneficiaries, with an estimated payroll relief of up to approximately €500 per year (approximately €40).
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