Income tax: 95% of French people will “pay less” in 2020, according to Darmanin

Nearly 95% of taxpayers subject to income tax will benefit from a tax cut next year, for an average amount of 300 euros per household, assures the Minister of Public Accounts Gerald Darmanin in Le Parisien on Wednesday.

“Almost all of the people who pay income tax – whether they are workers, employees, executives – will be affected” by the five billion euro reduction in income tax promised by Emmanuel Macron, Mr. Darmanin indicates in this interview. “In total, more than 95% of taxpayers will pay less tax”, adds the minister.

“300 euros per household and per year”

According to the tenant of Bercy, the amount of the tax cut, which will be debated as part of the finance bill for 2020, will reach “around 300 euros per household and per year” on average.

“It is simply an order of magnitude because we will ensure that the tax cut is more significant for the middle classes than for people with higher incomes, he specifies, however. ‘Economy Bruno Le Maire said last week that he wanted to benefit nearly 15 million tax households from the drop in income tax, with a gain of 180 to 350 euros per year depending on the households concerned.

Income tax, which brings in nearly 75 billion euros each year 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 is in addition to 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 be around 2% deficit next year, as expected,” promises the minister, confirming that the tax loopholes for companies will be reduced to partly finance the reduction in tax.

At the same time, “reforms such as 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,” he assures us.

(Source: AFP)