Higher Taxes in Italy under Meloni? Which Social Classes are Mostly Affected in the Government’s Silence?

The Meloni Government and the Tax Increase Allegation

Matteo Renzi has accused the Meloni government of raising taxes after Istat certified a 0.8% increase in Italy’s tax burden in the first quarter of 2024 compared to the same period of the previous year.

Istat Report and Political Reactions

In early July, Istat published a report on the public administration accounts for the period from the beginning of the year until March 31, 2024.
During the first quarter of this year, Italy’s tax burden stood at 37.1%, compared to 36.3% in the same period of 2023.

Matteo Renzi criticized Meloni in an interview with La Stampa, highlighting the increase in tax burden and accusing Meloni of focusing more on communication than concrete actions.

The latest data released by Istat only refer to the first quarter of 2024.
The government’s Economic and Financial Document (DEF) foresees a decrease in the tax burden to 42.1% of the GDP for this year, with a slight increase expected in 2025 and a subsequent decrease in 2026.

The Taxation Debate and Flat Tax Proposal

The center-right has historically advocated for tax cuts, with the Flat Tax proposal being a key feature of their electoral program.
However, the recent Istat certification of a tax burden increase raises questions regarding the government’s fiscal policies.

For income up to 35,000 euros, there is currently a reduction in social security contributions, benefiting lower-income earners.
The 0.8% tax increase primarily impacts individuals who have moved to a higher income bracket due to these changes.

The issue of taxes has become a sensitive topic for the Meloni government, with promises such as the Flat Tax and other fiscal reforms facing challenges in implementation.

Future Fiscal Scenarios and Challenges

To address public finances and comply with European Commission recommendations, the government faces the dilemma of cutting public spending, raising taxes, or a combination of both.

As the government prepares for the next budget law, discussions around fiscal policy and budget adjustments are expected to intensify, with potential implications for Italian taxpayers.

Giancarlo Giorgetti’s suggestions for controlling public spending may play a crucial role in shaping future fiscal decisions, but the looming budget discussions in September suggest potential challenges ahead.