Leo: "There will be a sign of attention to the middle class"
The Deputy Minister of Economy outlines the hypotheses of tax reform: extension of the second Irpef bracket, flat tax for young people and relief on housing
Quick Look
- The Deputy Minister of Economy Maurizio Leo announces a signal for the middle class with the possible extension of the Irpef bracket up to 60 thousand euros.
- Among the hypotheses also a flat tax for young people and the confirmation of building relief.
AI-generated summary
Why It Matters
The Italian tax system is the subject of reform hypotheses to reduce the pressure on the middle class and young people.
Leo: “There will be a sign of attention to the middle class"
"The tax system has changed a lot since the Seventies, when there were many rates, from 10 to 70%. Today there are only three rates, many forms of relief, the no tax area, etc. Of course, there is also a lot of tax evasion, but in recent years it has reduced", reported Leo. "From 2023 to 2025 we recovered 101 billion, an absolute record: 31.4 billion in 2023, 33.4 in '24 and 36.2 in '25. Compared to the traditional approach, taxation is now made up not only of rules, but of rules and technology", he added. The hypothesis is to extend the second Irpef bracket at 33% up to 60 thousand euros of income, with a tax saving that could reach up to 1,000 euros per year. When asked if the benefit will be canceled beyond a certain income threshold, Leo replied: "I'm for simple things and therefore I wouldn't put any ceilings. But the coverage will have to be verified, around 2.7 billion. And then there is always a level of political decision which is up to the leaders. But the signal of attention to the middle class will be there".
Flat tax for young people and housing relief
The Deputy Minister of Economy also spoke of a possible flat tax of 5% on income increases from one year to the next for young people up to 35 years of age. "One can think of a flat tax of 5% on income increases from one year to the next for young people up to 35 years old, a measure that should be accompanied by a tax benefit for the employer who grants increases,” he said. Leo also focused on the relief for renovations and the flat rate tax for commercial properties. "I think it is good to maintain the reliefs of 50 and 36% on the renovations, respectively, of the first and second home, which otherwise would fall to 36 and 30% from 2027. Furthermore, I am in favor of introducing the dry tax rate of 21% also on the rentals of commercial properties within certain limits: it can help in particular local trade, facilitating the agreement between merchants and owners on lower rents", he concluded.
What to Watch
AI outlook — possibilities, not facts
Verification of financial coverage for the extension of the second Irpef bracket
Likely · Within months
Open Questions
- What will be the financial coverage for the measure?
- Will the measure for incomes up to 60 thousand euros be confirmed?
