Italian Government Proposes Individual Income Tax Reduction for Middle-Income Earners and Increased R&D Incentive as Part of 2022 Budget

The Italian government has reportedly proposed additional measures for the 2022 budget, including a reduction in individual income tax for middle-income earners. The proposal would reduce the number of income tax brackets from five to four as follows, with reduced rates for the middle brackets:

• up to EUR 15,000 - 23% (unchanged)
• over EUR 15,000 up to 28,000 - 25% (reduced from 27%)
• over EUR 28,000 to 50,000 - 35% (reduced from 38% and bracket threshold reduced from EUR 55,000)
• over EUR 50,00…