IDEAS home Printed from
   My bibliography  Save this paper

A reform proposal of Family income tax deductions and of Family Benefits in Italy


  • Paolo Bosi



In the Italian fiscal system the monetary transfers supporting families in their parental responsibilities are realized with two different tools: a tax expenditure (tax credits for dependent members of the family) and a family benefit delivered by INPS, the most important central public insurance institution. These instruments have been heavily criticized as for the weak target efficiency, distorted selectivity, lack of universality. This paper proposed a unification of these provisions on the expenditure side introducing a Child benefit which realizes selectivity using the recently reformed Indicator of the economic condition of household (Isee), flat till to 15 thousands Isee and then linearly declining till 25000 euro of Isee, of amount determined according an equivalence scale. The reform utilizes 14,3 billion of euro out of the 18,5 devoted to the present provisions. An accurate distributional analysis using the CAPP welfare microsimulation model shows many positive aspects of the proposal. The article concludes suggesting the opportunity of coordinate this reform with the introduction of a new provision against poverty.

Suggested Citation

  • Paolo Bosi, 2016. "A reform proposal of Family income tax deductions and of Family Benefits in Italy," Center for the Analysis of Public Policies (CAPP) 0138, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
  • Handle: RePEc:mod:cappmo:0138

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Child benefits; Social assistance; poverty;
    All these keywords.

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mod:cappmo:0138. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sara Colombini). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.