Home » Tax wedge, pensions and flat tax. Who gains and who loses from the maneuver

Tax wedge, pensions and flat tax. Who gains and who loses from the maneuver

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Tax wedge, pensions and flat tax.  Who gains and who loses from the maneuver

The maneuver is preparing to obtain the definitive go-ahead from the Senate, in time to avert the specter of the provisional budget exercise. From cutting the tax wedge to pensions, from the flat tax to measures for the family, it is possible to make an initial assessment and understand who gains and who loses from the solutions provided.

Wedge cut to 3% for incomes up to 25 thousand euros

With the manoeuvre, the salary ceiling is raised to be able to benefit from the 3% cut in the contribution wedge – an operation entirely for the benefit of workers – which goes from 20 to 25 thousand euros, while the current 2% cut is confirmed for salaries up to 35 thousand euros. In fact, the text of the maneuver provides that for 2023 the cut in the share of social security contributions paid by public and private employees (excluding domestic workers) will be increased by one point, to 3%, with a monthly taxable salary of up to 1,923 euro – compared to the original version of the bill fired by the council of ministers which provided for the threshold of 1,538 euro -, while the current 2% cut remains confirmed for the taxable salary belonging to the higher bracket, within the monthly amount of 2,692 euro , already planned for 2022. In both cases, the taxable salary is parameterized on a monthly basis for thirteen months and the monthly amount limits are increased by the thirteenth installment for the month of December, the rate for calculating the benefits remains unchanged pensions.

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Therefore, there is a monthly saving of 41.15 euros, and an annual saving of 493.85 euros from the cut in the contribution wedge of 3% for gross wages of 25 thousand euros. For the salary range of 22,500 euros, the monthly benefit is 37 euros, the annual benefit is 444.46 euros. Looking at the monthly salary threshold, therefore, taxable salaries up to 1,923 euros benefit from the 3% cut in the contribution wedge (compared to the 1,538 euro threshold contained in the original text of the bill), while the current cut of 2 % for salaries that do not exceed the monthly amount of 2,692 euros.

minimum

Pensions, the “minims” increase

With the (almost) budget law, the “minimum” (525.38 euros) of the “over 75s” will rise to around 600 euros per month in 2023. All the others will rise to around 570 euros next year thanks to an increased revaluation.

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