Italy's Proposed Wealth Tax on Millionaires Sparks Political Debate

The Italian government is discussing a new wealth tax aimed at the top 0.1% of earners — roughly 50,000 individuals with assets over €5.4 million. Analysts estimate the levy could generate about €13 billion a year, which proponents say could fund cuts to middle‑class taxes and bolster education, health and welfare spending.

Support for the measure is coming from the centre‑left parties, including the Democratic Party, the Five Star Movement and the Greens‑Left Alliance, who presented the proposal during a book launch on taxing the rich. The right‑wing parties and centrist factions oppose the tax, arguing it would drive capital out of Italy. Former prime minister Giuseppe Conte and former prime minister Matteo Renzi have expressed skepticism, warning of possible capital flight. The debate continues as the coalition government works to shape its fiscal program.

The proposal remains under study, with no final decision yet on its structure or implementation.