Who loses out and is it paradoxical on reversibility, old age and disability pensions with the March tax reform? The tax reform presented in the first instance in the Council of Ministers, including the new personal income tax, revision of taxes and deductions, will certainly have an impact on the amounts of survivor’s, old-age and invalidity pensions received. Let’s see why and how much it will affect you.
- How reversibility, old age and invalidity pensions change with the new tax reform
- Who loses out with the tax reform on reversibility, old age and disability pensions
How reversibility, old age and invalidity pensions change with the new tax reform
They are preparing to change survivors’, old-age and invalidity pensions with the new tax reform and the new revision of the personal income tax rates who are preparing to move from the current four to three. The current Irpef rates which are four and are as follows:
- 23% for incomes up to 15,000 euros;
- 25% for incomes between 15,000 and 28,000 euros;
- 35% for incomes between 28,000 and 50,000 euros;
- 43% for incomes over 50,000 euros.
The new hypothesis, in order of arrival, of the Irpef revision presented provides for three new rates which could be:
- 23% for incomes from 8,500 euros and up to 28 thousand euros;
- 35% for incomes from 28,001 euros to 50 thousand euros;
- 43% for incomes over 50 thousand euros.
This new Irpef modification hypothesis presented joins two other hypotheses which were already discussed and which could still be under discussion.
The other hypothesis of a personal income tax review being examined by the government which will certainly affect the salaries of Italians provides for the following new rates:
- rate at 23% for incomes up to 28,000 euros;
- rate at 33% for incomes between 28,000 and 50,000 euros;
- rate at 43% for income over 50 thousand euros.
Finally, the third and final hypothesis for changing the personal income tax rates could provide for:
- 23% for incomes under 15,000 euros
- 27% for incomes between 15,000 and 75,000 euros;
- 43% for incomes over 75,000 euros.
Who loses out with the tax reform on reversibility, old age and disability pensions
Based on what was anticipated by the hypotheses for the revision of the Irpef changes, in general, we can say that, paradoxically, the losers with the new tax reform are those who have lower survivors’, old-age and disability pensions. In fact, the new personal income tax rates seem, in any case, to the advantage of the highest incomes, especially in the medium-high range between approximately 15 and 30 thousand euros.
The advantages, in terms of less taxes to pay, with simultaneous increases in monthly pension payments, in fact range from around 50-60 euros for those who receive lower pensions up to 700 euros for those who, on the other hand, receive higher pensions from 3,800 euros and up.
For the minimum pensions, lower, then, up to 600 euros, there is no payment of taxes, as these categories of income fall within the so-called no-tax area for which the payment of no tax is envisaged. The no-tax area for pensioners is set at 8,500 euros.