Announcements: What is the cost of reducing income tax?

Announcements: What is the cost of reducing income tax?

Emmanuel Macron announced this Thursday, April 25: the income tax will drop. But what is the cost to the state?

Announcements: What is the cost of reducing income tax?

Income tax will be reduced. The Minister of the Economy mentioned 15 million households concerned and a cost: 5 billion euros. This cost is one of the most gray areas since the announcements made on Thursday, April 25. Once again, money will have to be found to finance this measure.

The first way is to reduce the tax loopholes for companies, that is to say the advantages and deductions that allow them to pay less taxes. It is a shortfall of 60 billion euros for the state“, Explains Justine Weil, journalist on stage. “These niches are very numerous. There is, for example, the reduction in the electricity tariff in industrial sites or even that of the fuel used by construction companies.“.

“It corrects excess taxation”

Touching on the advantages of companies, but obviously that does not please the employers“, Says Justine Weil who lets Patrick Martin, deputy chairman of Medef, speak. “We maintain the idea that these are gifts to companies. No, it corrects excess taxes and charges on the companies that bear the most taxes and charges“.