2024-10-16 09:20:00
Many pensioners could thus pay more taxes.
This is an automatic benefit, which all pensioners benefit from, regardless of their income level. In reality, few people know about this discount. Every year the taxes give a gift to the elderly and allow them to save several hundred euros. An advantage from the world of work, which continues in the “afterlife”, but which could live its last hours.
The proposal is in fact to put an end to this tax break, which costs the State more than 4 billion euros every year. In a context where savings are sought at all costs, this could be of interest to the government. But the study of a new measure against the pension portfolio seems explosive.
Following the postponement of the pension increase from 1 January to 1 July, Michel Barnier and his teams may be tempted to examine the latest recommendation made by the Council on Compulsory Withholdings (CPO), a branch of the Court of Auditors.
Since 1979, in every tax return, the amounts indicated for taxes are automatically reduced by 10%. A measure introduced at the time by Raymond Barre, intended to reduce the tax burden on pensioners, particularly those with modest or average incomes.
Each year it is possible to deduct up to 4,321 euros from the tax base of income tax (2024 ceiling). A lot of money which is therefore not subject to any tax levy. An advantage for pensions, in line with professional expenses automatically deducted for workers. However, according to the CPO report, this system primarily benefits higher income earners. 30% of the cost of the measure benefits the richest 10%.
Faced with this observation, the CPO questions the usefulness of the system and instead proposes to grant it subject to a means test, so that it truly plays a role of solidarity. Without proposing a scale or estimating any additional revenue for the State.
The issue could be addressed very quickly in the National Assembly because the RN has presented an amendment aimed at replacing this reduction with an automatic deduction of 1000 euros for everyone. Enough to increase the tax revenues of the richest. But the party did not quantify the potential gain.
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