The political agreement on 4-rate personal income tax and 1 billion Irap cut

by time news – Achieved the political agreement on tax cuts for the middle class and the reduction of IRAP for self-employed and professionals.

The intervention on personal income tax will absorb about 7 of the 8 billion allocated to the maneuver to lighten the tax burden.

The scheme provides for the reduction of the rates, which will drop from five to four, with the reshaping of brackets, deductions and no tax area: the income bracket up to 15,000 will remain at 23%, the rate of 27%, for the bracket from 15,000 to 28,000, will drop to 25%, and those of 38 and 41% will disappear and will be unified in 35% for the range from 28,000 to 50,000.

Over 50,000 will go directly to 43%. The reorganization of the deduction system should also absorb the Renzi 100 euro bonus paid in paychecks.

The agreement in principle will now have to pass to the scrutiny of the government and the majority parties and could undergo adjustments in the coming days. The aim is to quickly translate the political proposal into an amendment to the maneuver to be presented to the Senate at first reading.

“A political agreement has been reached on the revision of the personal income tax rates which go from 5 to 4”, reports the Deputy Minister of Economic Development, Gilberto Pichetto Fratin, at the end of the meeting at the Mef on the tax cut initiated a week ago by the Minister of Economy, Daniele Franco, with the economic managers of the majority parties (the deputy minister for economics, Laura Castelli for M5s, the deputy minister at Mise, Gilberto Pichetto Fratin, for Forza Italia, the undersecretary for the economy, Maria Cecilia Guerra, for Leu , the chairman of the House Finance Committee, Luigi Marattin, for Italia Viva and the economic managers, Antonio Misiani, for the Democratic Party, and Alberto Bagnai for the Lega).

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On the basis of the indications provided by Pichetto, a general scheme for the reduction of IRAP on a “vertical” basis which will cost just over a billion and which provides for the abolition of the regional tax on productive activities for individuals, for all individual firms and self-employed workers.

Innovative start-ups could also be included.

Cuts from 2022 and will be structural

The cuts in Irpef and Irap will start from 2022 and will be structural. It is, explained Pichetto, the “first step of the tax reform”.

“The interventions will have a structural value, not spot measurements, and above all they will be perceptible – underlines Castelli – Two of the main things we asked for. We will act on the Irpef rates of the middle class, and in a structural way also on the IRAP. In the coming days there will be some detailed adjustments but the important aspect is that a balance has been found between political forces, perfectly in line with the parliamentary direction. The work was very positive ”.

Green light to the agreement also from the leader of the League Matteo Salvini who claims: “Irpef simpler and lighter for all taxpayers, via IRAP for all individuals: the League is in government to defend families and businesses”.

For the deputy of Italy Viva Luigi Marattin, it is “A good deal” because “the reform contains structural interventions both on Irpef, where the structure is redone and the most consistent tax savings are concentrated on the middle class, and Irap, where the tax for individual firms and individuals is abolished. And both interventions are steps of a two-stage path that has already been set up and will see fulfillment with the fiscal delegation”.

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