The government wants to reduce taxes by 2020. The first tax bracket could thus drop from 14% to 11%. But other questions arise for the richest.
In 2020, income tax is expected to drop. But to what extent ? Main avenue studied by the government, reduce the first tax bracket. There is talk of a drop from 14% to 11%. For the less well-off households, the average gain could be 350 euros. “It’s a good thing, it can only be good, as long as we can save a little”, underlines a taxpayer. “This tax reduction is a trifle, it is not enough”, regrets another.
12 million tax households could be affected
In total, 12 million tax households could be affected by such a measure. Mechanically, a decrease in the first tax bracket could lower the taxes of the richest, unless the government changes the income thresholds required to enter the top three tax brackets. One way to prevent the highest incomes from also benefiting from this tax gift. The final reform is expected to be announced in June.