Italian middle-income tax cut at risk as budget funds remain limited

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  Italy’s proposed income-tax cut for middle-income earners may be dropped from the budget because funding is limited.

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  The proposal would lower the tax rate from 43% to 33% for income between €50,000 and €60,000.

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  The reported alternatives include support for older and vulnerable people and help for young workers’ wages.

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  The tax cut has not been ruled out, as some members of the governing majority and government are still pressing for it.

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  Officials are also considering raising the flat-tax threshold for self-employed people to about €100,000.

Who

Italy’s government and governing majority are considering budget measures affecting taxpayers, older and vulnerable people, and young workers.

What

A proposed middle-income tax cut may be frozen because funding is unavailable; alternative measures are under consideration.

When

Ahead of the preparation of the budget.

Where

Italy; a governing-majority discussion was held at the Economy Ministry.

Why

Available budget funds are limited, and the reported tax cut is seen as reaching a relatively small group of about 3 million taxpayers.

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