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Tax wedge, annuities and flat taxes.  Who wins and who loses from maneuvering

Tax wedge, annuities and flat taxes. Who wins and who loses from maneuvering

maneuver Getting ready He received final approval from the Senate, just in time to avert the specter of a temporary budget exercise. From cutting the tax wedge to pensions, and from flat tax to family measures, it is possible to make an initial assessment and understand who gains and who loses from the solutions offered.

Cut the wedge to 3% for income up to 25 thousand euros

with the maneuver The salary cap has been raised to be able to take advantage of the 3% reduction in the contribution wedge – an operation in the interest of all workers – which ranges from 20 to 25 thousand euros, while the current 2% reduction in wages up to 35 thousand euros has been confirmed. In fact, the maneuver text states that by 2023, the reduction in the share of social security contributions paid by public and private sector employees (excluding domestic workers) will be increased by one point, to 3%, with a monthly taxable salary of up to 1,923 euros – compared to the original version of the bill launched by the Council of Ministers which stipulated a minimum of 1,538 euros – while the current reduction of 2% remains certain for the taxable salary of the upper bracket, within the monthly amount of 2,692 euros, already planned for 2022. In both cases, the taxable salary is determined on a monthly basis for thirteen months and the monthly amount limits are increased by the thirteenth December installment, and the rate of benefit calculation remains unchanged for annuities.

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Therefore, prof Savings of €41.15 per month, and annually €493.85 from the contribution wedge reduction of 3% for gross wages of €25,000. For salary range 22500€, monthly accrual 37€, annual accrual 444.46€. Given the monthly salary limit, taxable salaries of up to €1,923 benefit from the 3% reduction in the contribution wedge (compared to the minimum €1,538 in the original text of the invoice), while the current reduction of 2% For salaries that do not exceed the monthly amount of 2692 euros.

minimum

Pensions, increasing the “minimum”

With the budget law (approximately), the “minimum” (€525.38) from “over 75” will rise to around €600 per month in 2023. All the others will rise to around €570 next year thanks to further currency revaluations.