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Irpef and Superbonus, that's why they bring greater benefits to richer groups

Irpef and Superbonus, that’s why they bring greater benefits to richer groups

Written by Valentino Larsinez, Leonzio Rizzo and Riccardo Sicomandi (Source:

The 2022 gambit provides a review of personal income tax rates and an extension of the Superbonus for restructuring. In general, both interventions bring greater benefits to the income-richest groups

One of them is enshrined in the budget law that is currently being discussed in Parliament personal income tax review And an extension of Superbonus 110 percent. Both measures have significant distributional consequences.

It can be said that the main focus of Irpef مراجعة review At this point the erratic trend of marginal rates in the range of 28 thousand and 50 thousand euros and Reduce the tax burden on individual income. An important effect of this reform is the achievement of tax savings of about 7 billion, distributed mainly on income from 35 thousand to 75 thousand euros, which has led to a reduction in the progressivity of personal income tax. Suffice it to consider that the average taxable income for Irpef purposes was €21,800 in 2019 and that 90% of taxpayers declared income. Less than 40.000 Euro. Between 35 and 75 thousand euros are found about 10 percent of all taxpayers. Within this range, we estimate using EU and SILC data that 57 percent of tax savings go down. Instead, taxpayers with more than €75,000 have 2.5 per cent, which corresponds (again by estimation with EU SILC data) with 22 per cent of tax savings.

Moreover, in the current discussion, not much has been said about the distributional effect of Super Bonus. The budget bill provided, in the initial version proposed by the government, a maximum of €25,000 for access to the Superbonus for real estate units used as primary residences for individuals, thus excluding condominiums. However, that rule have been cancelled These days an amendment approved by the Senate Budget Committee. Therefore, at present, anyone who owns a home can benefit from the facility without income restrictions.

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this scale places a Strong equity problem, because it is very likely that the main beneficiaries will be those who They own high-value real estate.

We wonder how different income groups will benefit from lower taxes, whether from the Irpef Amendment, or the 110 percent Superbonus over the next five years, or from 2022 to 2026. For the five-year period 2022-2026 shipment To finance the Superbonus in the amount of 31.2 billion, as evidenced by the technical reports of various government documents (for example, On page 102 of the Upb . hearing). Superbonus-financed expenditures are likely to be distributed in a manner similar to those of building stock recovery and those ofEnergy Efficiency. Therefore, to simulate the distribution of expenses needed to finance the Superbonus, we use the breakdown by income category for deductions for building inventory recovery expenses and for interventions aimed at energy savings (tax returns 2019). The personal income tax review is simulated using Eu-Silc data. In the latter case, we multiply the annual accrual by five.

Figure 1 shows how Superbonus benefits increase with increased income: In fact, low and medium incomes will benefit little, while high ones will benefit greatly (up to 14 thousand euros on average for incomes over 300 thousand euros per year). The income bracket between 50 and 60 thousand euros, which is the category that will benefit most from the reconfiguration of personal income tax rates and the deductions provided for in the Budget Code, will receive in about 5 years 6 thousand euros more, of which 3,200 euros are thanks to the Irpef review and 2,800 euros are Superbonus. From 60 thousand euros onwards, the share of Superbonus will be greater than that of the Irpef review. In particular, those with an average income of 200-300 thousand euros will receive benefits from a Superbonus equal to 9,500 euros and a tax reduction for an Irpef review of 480 euros.

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Made of boom

Now suppose we limit the use of the Superbonus by using total income as a criterion. If we do not allow those whose income exceeds 200,000 euros to use Superbonus, then 1.1 billion euros can be recovered within five years; If the maximum is 100 thousand euros, the recovery will be 3.5 billion. Finally, in the event that it is predicted that it is impossible to use the Superbonus for those whose income exceeds 50 thousand euros, the tax savings will be 9.6 billion, that is, almost two billion dollars annually.

These resources can be useful socially desirable To renovate high-income real estate. For example, they can be used to compensate, via appropriate tax instruments, for lower incomes that are least favored by the Irpef review in its approval process. process can be suitable, also in light of the current economic and social context, which has deteriorated significantly in recent years. For example, approx 4.6 million people today live in extreme povertyagainst 2.8 million in 2008 (Istat data).