Italy to Cut Income Tax for Middle Class at Cost of €9 Billion

Italy’s latest budget will ease the burden on middle-class earners, allowing Prime Minister Giorgia Meloni to keep her promise to voters at a cost of about €9 billion ($10.5 billion) over three years.

The government will cut taxes to 33% from 35% for incomes between €28,001 and €50,000, a central tenet of her both her campaign and time in office, the Italian Treasury said on Tuesday. Measures to progressively soften the impact of taxation on low earners and to simplify the system have featured frequently in fiscal announcements since she took office in 2022.