This year, the tax freedom day arrives one day earlier. On Monday 6 June the Italians, obviously in a purely theoretical line, “finish” to pay taxes and social security contributions to the State and from Tuesday, therefore, the so-called day of liberation starts. Compared to 2021, this year the deadline comes one day earlier. In fact, last year the date was 7 June.
This year, after just over five months from the beginning of the year, practically after 157 working days including Saturdays and Sundays, the average taxpayer finishes working to pay all the tax payments of the year (Irpef, Imu, VAT , Tari, miscellaneous surcharges, IRAP, IRES, social security contributions, etc.) and from Tuesday 7 June he starts earning for himself. The calculation comes from the Studies Office of the CGIA of Mestre.
Among the big EU players, only France pays more taxes
From the CGIA Studies Office they specify that the identification of the “tax release day” is nothing more than a pure theoretical exercise that serves to demonstrate, if there was still a need, the excessive tax burden that weighs on Italians. A problem that emerges to an equally evident extent even when we compare ourselves with our main competitors. In fact, among the most important countries in Europe, in 2021 only France recorded a higher tax burden than ours. If in Paris it was 47.2 per cent of GDP, in Berlin it was 42.5 per cent and in Madrid at 38.8 per cent. In Italy, on the other hand, the tax burden has reached a record threshold of 43.5 per cent. Among the 27 of the EU, Italy was in sixth place: Denmark (48.1 per cent), France (47.2 per cent), Belgium (44.9 per cent), preceded us. Austria (43.8 per cent) and Sweden (43.7 per cent). Last year the EU average “stopped” at 41.5 per cent, two points less than ours.
The method of calculating the tax freedom day
How did we come to identify June 7 as the “fiscal release day” of 2022? The estimate of the national GDP expected in 2022 has been divided over the 365 days of the year, thus obtaining an average daily figure. Subsequently, the revenue forecasts of social security contributions, taxes and fees that the income earners will pay this year were considered and were compared to daily GDP. The result of this operation made it possible to calculate the “tax freedom day” for the current year.
In 2021 we had the historical record of the tax burden
The CGIA also observes that by analyzing the historical series, the “earliest” “day of fiscal release” was in 2005. On that occasion, the tax burden stood at 39 per cent and for Italian taxpayers it was enough to reach 23 May ( 142 working days) to leave behind all tax deadlines. Always observing the calendar, the most “late” one, as we said above, was recorded in 2021, since the tax burden reached an all-time high of 43.5 percent and, consequently, the “tax release day” it started on June 8th. It is correct to point out that this record peak in the tax burden is not attributable to an increase in the levy imposed last year on households and businesses, but to the marked growth recorded by the national GDP (over 6.5 per cent) which, after the vertical drop recorded in 2020 (-9 per cent), contributed to a significant increase in revenues (see Table 1).
The June tax jam: 141 deadlines
If, after the school case elaborated by the Cgia Studies Office, we go back to dealing with the “bitter” reality, this year June is again characterized by a real tax traffic jam. From reading the agenda reported on the Revenue Agency website, we see that
this month, Italian taxpayers will have to meet 141 tax deadlines[1]; of these, 122 (equal to 86.5 per cent of the total) will force the Italians to put their hand to their wallet. A fiscal calendar to shake your wrists, which once again raises a big problem: in Italy we not only suffer an excessive tax levy, but also the methods of paying taxes cause a bureaucratic cost that is unmatched in the rest of Europe.