The effective tax rates jungle. Effective marginal and average tax rates in the 2017 Italian tax-benefit system for individuals and households
![Foto Fisco. La giungla delle aliquote marginali. Al contribuente conviene sempre lavorare (e guadagnare) di più? Foto Fisco. La giungla delle aliquote marginali. Al contribuente conviene sempre lavorare (e guadagnare) di più?](/application/xmanager/projects/leg19/attachments/dossier/immagines/000/002/135/ame300x200.jpg)
The Italian tax-benefit system generates a broad range of effective marginal tax rates, with positive and negative values, determining, in some cases, also a "poverty trap" (that is a marginal tax rate higher than 100 percent). The marginal and average tax rates are also sometimes decreasing with growing taxable income, while at a low level of income we have such high tax rates that a disincentive for labour supply may result. With this evidence, a correction of the Italian tax-benefit system appears desirable both to preserve a more efficient income redistribution as well as labour supply incentives.