Italian Middle Class Faces tax Squeeze: OECD Data Reveals
CITY — may 7,2024 —
New data from the OECD reveals a concerning trend: the Italian middle class is experiencing a significant tax squeeze. Highlighting a disparity in wage increases, the study showed that despite increases in gross salaries, net pay for middle-income earners is the lowest in Western nations. This is notably troubling for families, as illustrated by a worker with two children, receiving just €50 net for every €100 gross increase. Experts are now calling for immediate action to address the issue.
Italian Middle Class Faces Tax Squeeze: OECD Data Highlights Disparity
New data from teh Association for Economic Cooperation and Development (OECD) reveals a concerning trend for Italy’s middle class: despite increases in gross salaries, the net increase in their paychecks is the lowest among Western nations. This revelation has sparked debate and calls for immediate action to address what some describe as a “fiscal massacre.”
The Numbers Don’t Lie
- Single, Child-free Workers: For every €100 increase in gross salary, a single, child-free Italian worker with a medium income receives only €68 net. This is significantly lower than the OECD average of €85.
- Families with Children: The disparity is even more pronounced for families. A worker with an average income, in a two-parent household with two children, sees a net increase of just €50 for every €100 gross increase, compared to the OECD average of €75.
These figures underscore the heavy tax burden weighing on italian workers, notably those in the middle-income bracket.
Did You Know?
italy’s tax system relies heavily on income tax (IRPEF), which is progressive, meaning higher earners pay a higher percentage of their income in taxes. However, the current structure may disproportionately affect the middle class.
Political Response
Honorable Luigi Marattin, a member of the Liberal Democratic party, has been vocal about the issue, stating, In Italy the average class is massacred: but we probably did not yet realise how much it is. The data Ocse As soon as they are published, they tell us that the increase in the net in the paycheck that – in the face of increases in gross salary – receive Italian workers belonging to the average class is the lowest of the countries of the western world.
Marattin’s concerns echo a long-standing critique of Italy’s tax policies, which the Liberal Democratic party argues disproportionately burden the middle class. The party contends that high IRPEF rates, compared to countries like France, stifle economic growth.
In Italy the data no longer looks at them.
The other day some have come out that document that the tax massacre of the average Italian class is beyond all imagination.
Tomorrow I will ask,during the question time,the minister Giorgetti.
Meanwhile, look a little here. pic.twitter.com/01pgegVyYB
– Luigi Marattin (@Marattin) May 6, 2025
Call for action
Marattin plans to address the issue directly with the Minister of Economy, Giancarlo Giorgetti, during Question Time. Tomorrow, al Question TimeI will formally ask the Minister of Economy, Giancarlo Giorgettiwhat does it intend to do to end the fiscal massacre of the middle class. Those who send the country forward cannot die under the weight of taxes and state inefficiency,
Marattin stated, emphasizing the need for immediate action to alleviate the tax burden on those who drive the country’s economy.
Pro Tip
Understanding your tax bracket and available deductions can help minimize your tax burden. Consult a tax professional for personalized advice.