I’ll explain why the flat tax is not a gift to the self-employed

Purposes and effects of the Flat tax envisaged by the Meloni government. The post of Enrico Zanetti, tax expert and former Deputy Minister of Economy and Finance

To those who fan the flames of the opposition between workers, saying that the flat tax for the self-employed is an unjustified gift, it should be quietly observed that, given a gross remuneration and a gross income of business or self-employment of 60,000 euros, we have that:

– the employee discounts contributions for 5,400 (9%) and, on the remaining taxable income, a progressive IRPEF of 16,378 euros, thus receiving a net disposable income of 38,222 euros;

– the self-employed with flat tax enrolled in INPS separate management discounts contributions of 15,000 euros (25%) and, on the residual taxable income, a 15% flat tax of 6,750 euros, thus receiving a net disposable income of 38,250 euros.

If we proceed to the same calculations for lower levels of gross income, the self-employed with a flat tax not only continues to not be privileged, but is even penalized (less, fortunately, than they would be without the flat tax).

It would therefore be extremely appropriate to understand that, pending a fundamental systematic reform of the tax and social security burden on all income from work, the flat tax of individual VAT numbers does not constitute the asystematic instrument for making the self-employed privileged, but the asystematic instrument for try to reconcile the different tax and social security wedges and, therefore, the levels of net disposable income with which everyone "gets to live".

---

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/vi-spiego-perche-la-flat-tax-non-e-un-regalo-agli-autonomi/ on Sat, 26 Nov 2022 06:52:55 +0000.