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The proceeds from preventive settlement agreements to be allocated to the cut of the second IRPEF bracket of 35% and the effects of the new cut of the tax wedge on employee paychecks A recent government measure has introduced important changes in Italian taxation, in particular with regard to the second IRPEF bracket and the tax wedge. The law provides that the proceeds from preventive settlement agreements are allocated to finance the cut of the second IRPEF bracket, which will be reduced from 38% to 35%. But what exactly are preventive settlement agreements, IRPEF and the tax wedge, and what are the effects of these measures on employee paychecks? Preventive settlement agreements are a legal instrument that allows an insolvent company to negotiate agreements with creditors in order to avoid liquidation. Through this mechanism, the company can obtain debt restructuring and greater financial flexibility. IRPEF, or Personal Income Tax, is a progressive tax that affects individuals based on their income. The second IRPEF bracket currently provides a rate of 38% for an income range between 15,001 euros and 28,000 euros per year. The tax wedge, on the other hand, indicates the difference between the cost of a worker for the company and the net salary actually received by the employee. In other words, it represents the amount of taxes and social contributions that weigh on the cost of labor. The decision to allocate the proceeds from preventive settlements to the cut of the second IRPEF bracket of 35% aims to reduce the tax burden on income from employment. This measure should lead to an increase in liquidity available to workers, who will see a decrease in taxation on their income. However, it is important to consider that the cut in the tax wedge could lead to an increase in the cost of labor for companies. Consequently, it is essential to carefully evaluate the effects of these measures for both workers and companies. In conclusion, the government has decided to allocate the proceeds from preventive settlements to the cut of the second IRPEF bracket of 35%, in order to reduce the tax burden on income from employment. This measure will have an impact on employees' paychecks, who expect a reduction in taxation and an increase in the availability of liquidity. However, it is also important to evaluate the effects on businesses, which could see an increase in labor costs due to the cut in the tax wedge.