Is Italy a country of poor and wealthy people?
What emerges from the Italian tax returns of 2022, drawn up by the MEF at the end of May this year. These data define Italy as a "country of poor wealthy" (copyright of Alberto Brambilla, president of the Study and Research Center for Social Security Itineraries ). Michael the Great's Notepad
I offer the reader a very instructive text in my opinion: the summary of the tax returns of Italians for 2022, drawn up by the MEF at the end of May of this year. These data define Italy as a "country of poor wealthy people" (copyright by Alberto Brambilla, President of the Study and Research Center for Social Security Itineraries ).
If I may self-quote, in December of last year I wrote in this column: “We are one of the most indebted countries on the planet, with an underground economy and stratospheric tax evasion. We are a country that still does not have a competition law worthy of the name. A country hostage to union guilds in schools and other crucial public services. A country in which the State intermediates more than half of the GDP. A country whose central and peripheral administrative system boasts regulatory hypertrophy and an asphyxiating Soviet-style bureaucracy. A country in which the pauperistic verb risks spreading among the southern populations. A country in first place in Europe for ownership of homes, cars, mobile phones. On the second for pets. A country where the turnover linked to gambling – legal and illegal – is close to the amount collected by Irpef. A country that, in order to know the future as wizards and witches, spends more than what is set aside annually for social security funds. A country where there are more than eight million pensioners wholly or partially assisted by general taxation, three million beneficiaries of basic income and another three million beneficiaries of social safety nets: multiplied by the average number of dependents, there are around twenty millions of citizens who, in one way or another , are assisted by the Treasury. Dear demo-populist friends, I ask you: what's wrong with neoliberalism?”. The situation does not seem to have improved. But let's get to the data.
In Italy, 23.75% of taxpayers declare negative income of 7,500 euros gross per year and pay an average tax of 16 euros per year thanks to the Tir (Income supplementary treatment, the former Renzi bonus increased); the following 18.84% of citizens, who declare between 7,500 and 15,000, pay an average personal income tax of 250 euros, again thanks to the concessions. In total, 42.6% of citizens – who, considering dependents, are 25.23 million – pay only 1.73% of the Irpef, which amounts to a total of 175.4 billion.
Then there is the next 13.5% who declare income between 15 and 20 thousand euros, pay 5.65% of the Irpef and an average tax of 1,271 euros. Therefore, 56% of the population hardly pays 8% of the personal income tax and consequently, it is assumed, even less for other taxes, including indirect ones. The next income range from 20,001 to 29,000 euros includes 9,169,315 taxpayers (22.1% of the total) which, considering the ratio between declarants (41.497 million) and inhabitants, concerns 13,088,930 inhabitants: these taxpayers pay a average annual tax of 3,506 euros, which is reduced to 2,456 euros per individual inhabitant, and they pay a total of 32.15 billion, equal to 18.35% of taxes (it was 19.37% in 2020).
In short, a country that for 60% of the inhabitants lives on less than a thousand euros gross per month. Just to understand the seriousness of the situation, it must be specified that national health expenditure in 2021 amounted to around 127 billion for a per capita of 2,144 euros; therefore, for these first 3 income brackets, the difference between the Irpef paid and the cost of healthcare alone amounts to 57.814 billion, which is borne by the other taxpayers. And here we are talking about health care alone, without considering all the other services provided by the state and local authorities which they also benefit from, and which some other taxpayer will have to take on.
But then there are other data that instead describe Italians as far from poor: for example, those of the Blue Book report of the Customs and Monopolies Agency which estimates spending on gambling in 2022 at over 136 billion euros: an all-time record for Italian wagers (there were 111.7 billion in 2021) to which we must add at least another 20 billion for irregular gaming which, according to judicial investigations, benefits above all the mafias that manage a large part of the legal and illegal sector. Out of 59,236,213 resident citizens, this means 1,886 euros per capita spent on gambling for 2021 and over 2,320 euros per person (excluding illegal gambling) for 2022, an abnormal figure that exceeds the cost of the entire public health system in 2022 or the budgets of just under 8,000 Italian municipalities and well above the average personal income tax.
Or, to cite another figure, just look at the possession of smartphones and mobile internet connections: out of less than 60 million inhabitants, there were 78.2 million mobile (cellular) devices in Italy at the end of 2022, equal to 132.6 % of the entire national population, up by about 200,000 compared to last year. Furthermore, 97.5% of Italians (a figure that continues to increase) own at least one smartphone so that, excluding infants, children and particularly elderly people, almost the entire population has at least one mobile phone (but many 2 or more), while 50, 8 million (86%) regularly use the internet, and people active on social platforms are over 43 million (+5.4%), with 75% of the population having at least one computer or laptop. The digital device that has recorded the greatest growth in terms of diffusion is the smartwatch, with an increase of 18% on an annual basis, which means that now a third of the population wears one. In the meantime, the market for devices to make one's home "intelligent", i.e. "smart home devices" (lights, shutters, intercoms, alarm systems, household appliances…) sees an average per capita expenditure of around 290 euros per year . We could continue with the possession of pets, of which we are first in Europe after the Hungarians (who, however, are less than ten million), cosmetic surgery, and so on.
But let's go back to the tax returns: from the data examined so far it appears that 77.84 of Italians have incomes of up to 29 thousand euros and pay 25.74% of all Irpef, insufficient to pay for the first three welfare (health, social assistance and education); above 300 thousand euros of declared income we find only 0.12% of taxpayers, i.e. only 48,212 subjects but who pay 6.98% of the total Irpef. Between 200 and 300 thousand euros of income there is 0.16% of taxpayers (67,408 people) who pay 3.45% of the Irpef; with gross incomes above 100,000 euros (in Italy we always talk about gross but, to get an idea, the net of 100,000 euros is equal to approximately 52,000 euros) we find only 1.39%, equal to 576,452 taxpayers who however they pay 22.26% of the personal income tax.
Adding to these taxpayers also the holders of gross income from 55,000 to 100,000 euros, which are 1,503,866 and pay 18.43% of the Irpef, we obtain that 5.01% pay 40.69% of the Irpef. Including gross income from 35,000 to 55,000 euros, it appears that 13.94% pay 62.52% of all Irpef. Finally, considering the 3,411,822 taxpayers (equal to 4,870,277 inhabitants) with incomes from 29,001 to 35 thousand euros who pay 8.22% of the total Irpef and pay an average annual tax of 6,031 euros, which is reduced to 4,225 euros per individual inhabitant, and pay a total of 11.75% of taxes, we conclude that 25.69% of Italians pay 70.74% of all Irpef, the vast majority of Irap, IRES, Isost and also of indirect taxes.
In conclusion: given the consumption, which is often superfluous, we are in the presence of a mass tax evasion, rather than large tax evaders. Furthermore, it will be increasingly difficult to finance our generous welfare over the next few years if there are so few who give and so many who take.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/mondo/italia-un-paese-di-poveri-benestanti/ on Sat, 15 Jul 2023 05:03:59 +0000.