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Rome — November 12, 2025 — Prime Minister Giorgia Meloni’s plan to reduce income taxes for Italy’s so-called middle class is facing fierce criticism, with opposition parties and unions arguing the measure disproportionately benefits higher earners.
Under the draft budget currently before parliament, the government proposes trimming the second tax band—annual incomes between €28,000 and €50,000—from 35% to 33%, costing roughly €3 billion in foregone revenues. Finance Minister Giancarlo Giorgetti said the move aims to ease the purchasing power squeeze on families hit by high inflation.
However, the independent parliamentary budget office warns that nearly half of the tax cut’s value will flow to just 8% of beneficiaries, earning between €48,000 and €200,000. Critics, including the CGIL union, have called for a national protest strike on December 12. Opposition leader Elly Schlein described the plan as favoring the wealthy.
Meloni defended the policy, arguing that those earning around €50,000 with families cannot be considered rich. Giorgetti echoed this, saying independent agencies “have a somewhat skewed view of life” if such earners are labelled wealthy.
The budget also proposes €1.6 billion in tax breaks on income from overtime, night shifts, bonuses, and fringe benefits, targeting lower earners. Nevertheless, analysts say the overall relief is minimal: managers may see a €408 reduction, white-collar workers €123, and blue-collar workers just €23.
The announcement comes amid rising discontent over stagnant wages and eroded purchasing power. According to OECD data, real wages in Italy in early 2025 were 7.5% lower than in 2021, the steepest drop among major OECD economies. Workers such as schoolteachers and nurses report cutting back on essentials and leisure as costs soar.
Despite its political fallout, the tax cut is likely to offer only symbolic relief, raising questions about the government’s ability to meaningfully address Italy’s cost-of-living crisis.
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