Thursday, October 20, 2016

Income tax : the Assembly votes a decline of a billion euros – The World

This gift tax will affect taxpayers whose income does not exceed 20 500 euros for singles and 41 000 euros for couples.

Envelope containing the tax return sent to taxpayers by the ministry of economy and finance, April 10, 2014 in Lille.

The mps approved, on Thursday, October 20, one of the flagship measures of the draft budget 2017, the decrease of one billion euros in income tax, which will benefit seven million tax households according to the government.

The tax cut, passed in first reading, will be the taxpayers whose income tax reference (RFR) does not exceed 20 500 euros for singles and 41 000 euros for couples. For families, this ceiling will be increased by 3 700 euros per half-share additional. The amount of the reduction will be 20% for taxpayers with RFR is lower than 18 500 euros (37 000 euros for couples), and then gradually declining thereafter.

According to Bercy, ” the gain will be the average of 154 euros and will be significant for the very large majority of the households concerned, since 5 million of them will see their taxes reduced by an average of 193 euros “. The measure is part of a movement initiated in 2014, which has already led the government to lower in 2015 and 2016 the amount of this tax iconic. The decline has now reached € 6 billion.

” Pressure “against the” reform “

The right has strongly criticized in the chamber a measure of ” purely electoral “ which will ” as a part of the French population and is modest, “. The mp for The Republicans, Marie-Christine Dalloz, has denounced a measure ” more and more concentrated in the tax burden on a small portion of the population and that only comes in any way on the fiscal shock of the beginning of the quinquennium “. the ” We did a tax reform redistributive over this five year period “, said the speaker of the socialist group Dominique Lefebvre.


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