Income tax: 95% of taxpayers “will pay less tax” next year, assures Gérald Darmanin

Income tax: 95% of taxpayers “will pay less tax” next year, assures Gérald Darmanin

This tax cut will be of the order of “300 euros per household per year” on average, says the Minister of Action and Public Accounts on Wednesday, in an interview with “Parisien”.

The Minister of Action and Public Accounts, Gérald Darmanin, arriving at the Elysee Palace on March 29, 2019 in Paris.  (MARIE MAGNIN / HANS LUCAS / AFP)

Good news for taxpayers. “More than 95% of taxpayers” subject to income tax “Will pay less tax” next year, and this for an average amount of 300 euros per household, assures the Minister of Action and Public Accounts, Gérald Darmanin, in an interview with Parisian, Wednesday, May 8.

“Almost all people who pay income tax – whether they are workers, employees, managers – will be affected” by the reduction of five billion euros in income tax promised by Emmanuel Macron, says Gérald Darmanin in this interview. The amount of this reduction, which will be debated as part of the 2020 finance bill, will reach “Around 300 euros per household and per year” on average, he said.

“It’s just an order of magnitude because we will make the tax cut more important for the middle classes than for people with higher incomes”, however, develops the Minister of Action and Public Accounts.

“We are staying on course for serious budgetary matters”

The Minister of the Economy, Bruno Le Maire, said last week that he wanted to benefit nearly 15 million tax households from this reduction in income taxes, with a gain of 180 to 350 euros per year, according to households concerned. Income tax, which annually brings in nearly 75 billion euros to the state, is currently paid by 16.8 million tax households out of a total of 38.3 million, or less than 45% of taxpayers .

According to Gérald Darmanin, the promised tax cut of five billion euros, which comes on top of a series of measures in favor of purchasing power decided under the pressure of “yellow vests”, will be offset by equivalent savings . “We are staying on course for serious budgetary matters and we will still have a deficit of around 2% next year, as expected”, promises the minister. The latter confirms with the Parisian that the tax loopholes for companies will be reduced, to partly finance the tax cut.

In parallel, “Reforms like those of the civil service, unemployment insurance, public broadcasting or even measures that encourage people to work longer will allow us not to widen the deficit”, assure Gérald Darmanin.