Fifty Years of Italian Personal Income Tax

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Dr. Ruggero Paladini
Dr. Ruggero Paladini

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GJMBR Volume 25 Issue B2

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This paper examines the evolution of the personal income tax (IRPEF) over fifty years. It describes the evolution of progressivity, initially based on a bracket structure, while the current dominant role is played by decreasing tax credits, creating excessive elasticity for most incomes. Furthermore, over time, many incomes that were initially included in the IRPEF have been progressively excluded. The system requires a thorough overhaul; the proposals presented are based on the dual system, in which income from work and income from capital are classified under two different taxes. The bracket structure is substituted by a continuous function for all tax payers.

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No external funding was declared for this work.

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The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Dr. Ruggero Paladini. 2026. \u201cFifty Years of Italian Personal Income Tax\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 25 (GJMBR Volume 25 Issue B2): .

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Issue Cover
GJMBR Volume 25 Issue B2
Pg. 39- 50
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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v1.2

Issue date

November 25, 2025

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English

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This paper examines the evolution of the personal income tax (IRPEF) over fifty years. It describes the evolution of progressivity, initially based on a bracket structure, while the current dominant role is played by decreasing tax credits, creating excessive elasticity for most incomes. Furthermore, over time, many incomes that were initially included in the IRPEF have been progressively excluded. The system requires a thorough overhaul; the proposals presented are based on the dual system, in which income from work and income from capital are classified under two different taxes. The bracket structure is substituted by a continuous function for all tax payers.

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Fifty Years of Italian Personal Income Tax

Dr. Ruggero Paladini
Dr. Ruggero Paladini

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