In Italy, a significant portion of the tax burden falls on a small percentage of high earners, while the majority of tax benefits are directed towards lower-income groups.
According to a study by the Itinerari Previdenziali Observatory, 86.33% of direct taxes benefit those earning up to 20,000 euros, with a portion also aiding those earning between 20,000 and 29,000 euros.
Meanwhile, individuals earning over 55,000 euros, who make up just over 5% of taxpayers, contribute about 42% of the total tax revenue but receive little in return.
This disparity highlights a systemic issue where the wealthier are excluded from subsidies and free services, despite their substantial tax contributions.
The study also points out that the Italian economy is heavily impacted by tax evasion and an underground economy, which skews the distribution of tax burdens and benefits.
Critics argue that this system discourages productivity and innovation, as it seems more advantageous to evade taxes than to excel economically.