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Tax Declaration, Italy under the Spotlight: Half of Citizens Off the Radar

Italy, often considered one of the wealthiest G7 countries, hides a surprising reality behind its fiscal data. According to a recent study conducted by Itinerari Previdenziali, 47% of Italians do not file an income tax declaration and live dependent on someone else. This data, atypical for a G7 nation, raises questions about economic inequalities and the Italian tax system.

Income Tax Declaration: Income Overview, Data, and Analysis

The report reveals that out of 59.2 million residents, only 31.3 million have submitted a positive income tax return for 2021. Alberto Brambilla, the president of Itinerari Previdenziali, emphasizes that this phenomenon contributes to defining Italy as a “country of the poor.” In 2021, 1,022,416 citizens reported zero or negative income, while another 8,832,792 earn less than 7,500 euros gross per year.

Income Concentration: A Growing Debate

Despite the increase in fiscal revenue from Irpef in 2021, reaching 175 billion euros, 62.5% of this sum comes from the 14% of taxpayers earning more than 35,000 euros per year. Stefano Cuzzilla, the president of Cida, criticizes this disparity, highlighting that a small percentage of the population bears the burden of half of Italians who do not declare income. Cuzzilla emphasizes the need to verify actual need before granting exemptions and support.

Challenges of the Income Bracket Below 15,000 Euros

However, beyond protests about inequalities, alarming data emerges: 42.6% of all taxpayers declare less than 15,000 euros, contributing to less than 2% of the total Irpef. This raises concerns about the sustainability of living costs for those earning in this income bracket, with or without government aid.

Economic Impacts on Daily Life

The economic situation of families earning less than 15,000 euros highlights a challenging reality. Daily expenses, such as rent, food, and bills, become a significant burden, leaving little room for savings or improvements in the quality of life. This raises the question of the need for targeted public policies to improve living conditions for those in this income bracket.

Furthermore, the distribution of the tax burden raises doubts about the fairness of the current system. While 13% of the population bears the majority of taxes, tax reform may be necessary to ensure more equitable participation of all citizens in financing public services.

The Pandemic and Inequalities: The Need for Change

The economic crisis caused by the pandemic has exacerbated existing inequalities, highlighting the fragility of certain income brackets. In this context, the debate on tax reform in Italy should be guided by the need to ensure a fairer and more inclusive society.

In conclusion, the issue of taxes in Italy is proving to be a complex reality, with a significant portion of the population off the tax radar. The analysis by Itinerari Previdenziali questions the current system, emphasizing the need for reforms to ensure a more equitable distribution of the tax burden and economic sustainability for all citizens.


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