Italy’s Court of Auditors released a report revealing that employees and pensioners bear the brunt of the country’s income tax, known as Irpef. The report indicates that 82% of the Irpef tax burden is shouldered by these groups. This finding highlights a significant imbalance in the Italian tax system. The report also points to €119 billion in lost revenue due to tax expenditures, representing 5.3% of the country’s GDP. These uncollected funds stem from various tax breaks and loopholes. The Court of Auditors’ analysis underscores concerns about fairness and efficiency within Italy’s fiscal framework, prompting calls for potential tax reforms to address the disproportionate burden on wage earners and retirees. The findings are expected to fuel debate regarding tax equity and the need for a more balanced distribution of the tax load.