Istat publishes for the first time a series of indicators concerning the tax and social security burden at the individual and household level. They are calculated on the basis of a microsimulation model which uses information from the “Income and living conditions” survey (EU-SILC European Statistics on Income and Living Conditions) and data provided by the Revenue Agency and INPS (the National Institute of Social Security).
Direct taxes account for 18.6 per cent of gross individual income (net of social security contributions) nationally, with significant differences according to source and income class.
The tax wedge, which consists of the sum of employees’ personal income tax and social security contributions and the contributions paid by employers, is 44.5 per cent of employee labour costs. The wedge for female workers is almost three percentage points lower than for male workers.
The tax and social security burden on self-employed workers’ income rises to 37.2 per cent if IRAP (the regional tax on productive activities) is included, and 33.9 per cent if it is excluded. The gap between the tax burden on self-employed females and on men is just one per cent.