Italian tax system's hidden truth: Why middle class pays more than rich
New research uncovers how Italyʼs tax structure lets top 7% pay less than average workers. Middle-class taxpayers shoulder most of the burden while wealthy benefit from low investment taxes
In a surprising tax-system setup‚ Italys wealthy 7% enjoy lower tax rates than regular workers (a fact thats raising many eyebrows in the euro-zone). The research by Alessandro Santoro and his co-workers shows this odd setup starts at €76‚000 yearly income
The tax structure makes life harder for common workers: they pay the highest social-security costs in EU while rich folks benefit from low-tax options. The system becomes un-fair above €76000 income and €450000 wealth – making Italy different from other similar countries
Here are the main ways wealthy people pay less:
- Financial investments taxed 12.5-26%
- Property rent flat-tax at 21%
- No tax on main homes
- Self-employed 15% tax rate
- Very small inheritance tax
Middle-class workers (those making €29000-75000) provide 40% of tax money; its a heavy load on just 21% of taxpayers. Mariana Mazzucato from University College London points out that flat-taxes dont make sense in a country with growing money differences
The government under Giorgia Meloni needs €2‚5 billion for its 2025 tax-cut plans but doesnt want to touch rich peoples benefits. Some experts like Marco Leonardi suggest fixing this by increasing inheritance tax which now brings just €1 billion (while France gets €18 billion)
Flat taxes of all types are regressive and bad for revenue; in a country like Italy with growing inequality they are just absurd
