5 billion euros correspond to the reduction in income tax, promised after the “great debate”. 3.7 billion are linked to the new housing tax exemptions.
The government wants to cause a fiscal shock. In 2020, taxes will drop by 9.3 billion euros. If we go into detail, more than 5 billion euros came from the reduction in income tax and 3.7 billion euros from the abolition of the housing tax for 80% of taxpayers. A calculation from which the middle classes emerge as winners.
Less taxes to boost household consumption
Example with this fictitious couple. One, a security guard, earns € 1,800 per month, while the other is a teacher and earns € 1,700. In total, they save € 980 for the year. But some French people could lose purchasing power, such as tobacco smokers whose products are increasingly taxed. However, by allowing this gain, the government hopes to boost household consumption, which is at half mast for the moment.