Emmanuel Macron: how to finance a tax cut of 5 billion euros?

Emmanuel Macron: how to finance a tax cut of 5 billion euros?

15 million households are expected to benefit from an income tax cut starting next year. The government intends to finance this measure estimated at 5 billion euros through the elimination of certain tax loopholes.

Emmanuel Macron: how to finance a tax cut of 5 billion euros?

Objective to win back. During his press conference Thursday, April 25, Emmanuel Macron announced a significant reduction in income tax from next year. To achieve this reduction of 5 billion euros, the executive could create new tranches, with lower thresholds of 5 and 10%. According to Bercy, 15 million households will benefit from this tax cut, the government wants to favor the middle classes. “What is certain is that it increases the complexity of income tax because it will be necessary to invent thresholds and a mechanism that ensure that not everyone benefits, but simply those who pay little tax ”, analysis Vincent Drezet, national secretary of the Solidaires finances publics union.

Tackle tax loopholes

To finance this measure, Emmanuel Macron mentioned the elimination of tax loopholes for companies, but not for households. Finally, the Head of State put forward the idea of ​​a possible lengthening of the retirement contribution period, without touching the legal retirement age. According to the executive, the tax cut will be effective from January 1.