If last year the tax burden in Italy hit an all-time high of 43,5 percent of GDP, in 2022, on the other hand, it is destined to drop to 43,1 percent. By virtue of this, only on 7 June (one day before what happened in 2021) will Italians celebrate the long-awaited day of fiscal liberation (or "tax freedom day").
In other words, after more than 5 months from the beginning of 2022 (equal to 157 working days including Saturdays and Sundays), the average Italian taxpayer will stop working to pay all the tax obligations of the year (Irpef, Imu, VAT , Tari, various additional taxes, IRAP, IRES, social security contributions, etc.) and from 7 June he will start earning for himself and for his family.
From the CGIA Studies Office they let it be known that the elaboration of this "counter" is a pure theoretical exercise; however, this analysis is interesting because it gives the dimension, when compared with the results of other European countries, of how frighteningly high the tax and contributions levy on Italian taxpayers is.
Looking at the historical series that was reconstructed up to 1995, the "earliest" day of fiscal release was in 2005. On that occasion, the tax burden stood at 39 percent and Italian taxpayers only needed to reach 23 May ( 142 working days) to shake off all tax deadlines. Always observing the calendar, the most "late" one, as we said above, was recorded in 2021, as the tax burden reached a historic record of 43,5 percent and, consequently, the "tax release day" has been postponed to June 8.
Among the big players in the EU, only France has a heavier tax than ours
A particularly exciting result does not emerge from the comparison with other European countries. In 2020 (the last year in which it is possible to make a comparison with EU countries), Italian taxpayers worked for the tax authorities until 5 June (almost 157 working days), i.e. 4 days more than the average recorded in the countries of the euro area and 6 if, on the other hand, the comparison is made with the average of the 27 countries that make up the European Union.
If we compare the Italian "tax freedom day" with that of our main economic competitors, only France has a much higher number of working days needed to pay taxes (+19), while all the others were able to celebrate the tax liberation in advance. In Germany, for example, this happened 5 days earlier than in Italy, in Holland 11 and in Spain 20. The most virtuous country is Ireland; with a tax burden of 20,7 per cent, Irish taxpayers fulfill their tax obligations in just 76 working days, starting to work for themselves on March 16: 81 days earlier than our tax freedom day.
In 2022 the state will collect almost 40 billion more: this money must be returned by reintroducing the fiscal drag
The record level of the tax burden reached in 2021 is not attributable to an increase in the levy imposed last year on households and businesses, but to the marked growth recorded by GDP (+6,6 per cent) which, after the vertical drop recorded in 2020 (-9 percent), helped to significantly increase revenue. In 2022, on the other hand, the tax burden, although economic growth should be around 3 per cent, is set to decrease by 0,4 percentage points. This will also happen thanks to the reduction of taxes and contributions decided by the Draghi government. The main measures approved last year are:
- IRPEF reform (-6,4 billion euros of resources);
- contribution exemption of 0,8 percentage points to employees with a gross monthly salary of less than € 2.692 (- € 1,1 billion);
- exemption from IRAP payment to individuals (-1 billion euro).
If we also take into account the improvement in the main economic variables that is reflected in the revenue trend, according to the DEF, the State will collect 2022 billion more in taxes and contributions in 39,7 than in 2021. We point out that part of this revenue increase it is certainly also attributable to the sharp increase in inflation which, according to forecasts, could be close to 6 per cent this year. Therefore, at a time when households are suffering frightening increases that risk collapsing domestic consumption, it would be desirable for the government to return part of this extra revenue with fiscal drag mechanisms. A measure that would strengthen the purchasing power of pensioners and employees, giving significant relief especially to those who currently find themselves in serious economic difficulties.