Flat tax, it will be mini and for everyone: but only on incremental income and productivity bonuses

Flat tax: for everyone but on incremental income and productivity bonuses

With regard to the Flat tax, the table at the Ministry of Economy and Finance is still open and a new hypothesis is presented. The government is reportedly considering the idea of ​​developing a formula that provides for a fixed tax on income increases for both self-employed and dependent workers. This mode it has nothing to do with those in force in some European countries, such as Estonia and Romania for example, which are based on fixed rates. Rather, it would primarily aim to lower the tax burden on those with significant ups and downs in earnings over the course of a year, mainly the self-employed.
However, the comparison of all the other Flat tax hypotheses still remains open, to decide which to be part of the Budget law. So much so that Maurizio Leo, Deputy Minister of Economy and Finance, during an interview with Quarta Repubblica reported that, in view of the maneuver, we would like to extend the incremental flat tax to employees but the numbers are robust and more complex to do. Employees for — I think those in the private sector – they have the productivity bonus on which 10% is applied up to 3 thousand euros. We can leave this measure and then on the part that exceeds 3,000 we can apply 15%, or we can apply 5% on the 3,000 euros.
To better understand which path is preferable to take in terms of tax reform, the MEF is proceeding with the calculations and statistics necessary to evaluate the measure also on the economic side, to find out how many resources the State will have to allocate to finance it. The Meloni government, therefore, continues its discussion of the various options. Let’s see what they are.

Read also: Incremental flat tax for employees: income increases are taxed at 15%.

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