“It is absolutely necessary to cut taxes to employees and retirees” – says the UIL confederal secretary, Domenico Proietti.
This was stated by UIL’s confederal secretary, Domenico Proietti, commenting on a union study on the effects on employees’ incomes of a hypothetical remodulation of the tax system on three rates. A worker with an income of € 30,000 gross a year would have a benefit, on thirteen monthly installments, equal to 41 euros per month, takes over the report. Even less a worker with an income of 20,000 euros gross a year, which would have a monthly benefit, out of thirteen months, of about 15 euros. According to the UIL simulation, for over 16.7 million workers, 76.87% of the total, the impact would be zero or minimal. Only 1.18% of workers, ie those with incomes above € 100,000 gross a year, would benefit more from the hypothetical tax reform. According to the confederation of via Lucullo the way forward to reduce taxes to employees and retirees is to act on the specific deductions. Uil compared the hypothesis of a revision of the income tax for employment income only and assimilated with a reduction to 3 of the number of rates: 23% for the income bracket of between 10,000 and 28,000 euros; 37% for the income bracket of between 28,000 and 100,000 euros; 42% for the income bracket above 100,000 euros. According to the UIL study, the mere reduction of personal income tax to 3 rates does not generate any impact for incomes up to € 15,000 gross a year, while it generates the maximum income on incomes of around € 130,000 gross, with a tax reduction equal to 6.91%. The difference between the current tax and the hypothetical 3-rate IRPEF would be to the advantage of higher incomes. Analyzing the three new rates in relation to the population of the income brackets for the vast majority of workers, 76.87%, the impact would be zero or minimal. While the greatest benefit, both in absolute and percentage terms, would be reserved for 1.18% of workers with incomes above € 100,000 gross a year.
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