Tax reform: government announces historic tax cut

Prime Minister Édouard Philippe announced a historic tax cut of 5 billion euros. Who will benefit and in what proportion?

This is good news for many households. On average, 12 million taxpayers will pay € 350 less in taxes. But, in detail, who will benefit from this drop? “I am happy. There is that and the reduction in local taxes, it is great because it is difficult to get by. We will be able to breathe a bit ”, explains a craftsman. Take the case of a retired couple. They receive € 4,600 in income per month.

The State will finance the measure by reducing tax loopholes

Before the reform, they should have paid € 4,165 in taxes next year. It will ultimately be € 3,273, a gain of € 892. Another hypothesis, that of a single parent with a child. The tax income is € 2,600 per month. Initially, the tax was to amount to € 758. Ultimately, it will be € 533, i.e. a gain of € 225. Finally, for a couple of two children whose income is € 6,500 per month. The annual tax should have cost € 6,362. Finally, the couple will have to pay € 6,112, a saving of € 250. This measure will cost the state 5 billion euros.