Social Security Routes Report: the distribution of Irpef in Italy
Only 30% of taxpayers pay almost 80% of the total personal income tax, while spending on assistance has grown by 146.5% since 2008
Quick Look
- The 2024 report by Social Security Itineraries reveals that in Italy 24.8 million people do not pay Irpef.
- 30% of taxpayers cover 78.67% of total revenue, while public spending on care has increased by 146.5% since 2008.
AI-generated summary
Why It Matters
The report analyzes the 2024 tax returns by comparing the trend in income with the growth in public spending since 2008.
In Italy there are 42.8 million taxpayers out of 58.9 million inhabitants but those who actually pay are just over 34.1 million. This means that approximately 24.8 million Italians (of which almost 9 million taxpayers) do not pay a single euro. It emerges from the Social Security Routes Report on 2024 tax returns which shows that in the first three income brackets (up to 20 thousand euros per year) there are 47% of taxpayers, therefore just under 20.2 million taxpayers who pay on average 5% of the total Irpef.
However, if we look at the part with the highest incomes, it emerges that those who declare at least 200 thousand euros are 0.3% of taxpayers and pay almost 10% of the total. With over 100 thousand euros of declared income there are 1.75% of taxpayers (745,615 people) who pay 22.25% of the Irpef.
From the analysis of Itinerari previdenza it emerges that those who declare more than 35 thousand euros are 18.78% of taxpayers and pay 65% of the entire Irpef. Those who declare over 55 thousand euros are 6.25% of taxpayers and pay 40.63% of the entire Irpef.
"47.13% of taxpayers with incomes up to 20 thousand euros - we read - pay 5% of the total Irpef and are entirely paid by other taxpayers; 69.78% of taxpayers with incomes up to 29 thousand euros pay 21.33% of the total Irpef while 30.22% of taxpayers pay 78.67 of the Irpef".
The study highlights that while incomes have been stagnant in the last 17 years (between 2008 and 2024), growing only by 270 billion equal to 34.54%, slightly more than inflation which in the period marked a +32.17%, and slightly less than GDP (+34.31%), in the same period public spending grew faster. It went from 789.45 billion in 2008 to 1,108.4 billion in 2024 after the peak of 1,150 billion in 2023 with an increase of 319 billion (+40.4%), that for assistance went from 73 to 180 billion with an advance of 146.5%).
Open Questions
- What tax reform measures could balance the load?
