You've heard (a lot) about it, you've been waiting for it, it's finally here! The 5 billion euros in tax cuts will be taken into account on the pay slips that employees will receive in a few days (retirees, them, have already seen them arrive on their pension sheets in early January).
Gérald Darmanin, the Minister of Action and Public Accounts, held a press conference on the subject this Tuesday morning. Suffice to say that he was playing on velvet, when he had also announced - the day before - that he was top of the list in Tourcoing (North) at the municipal elections next March.
Across France, the approximately 24.3 million taxable households will save on average 300 euros on their income tax, and even 595 euros for those who will be exempt this year from the housing tax, that is to say 80% of French people. Enough to make the Budget Minister popular, who does not have the opportunity every day to loosen the purse strings. Better: the French had nothing to do. Tax officials have already taken care of automatically recalculating the new rate. Which, in turn, will lower the tax.
In Bercy, we welcome this certainly expensive reform, announced following the movement of yellow vests, but which "restores purchasing power to households". "We received 5 out of 5 the message of fiscal exasperation that the French sent us", had recognized, last June, the Prime Minister.
The only downside: the 20.3 million households that do not pay income tax (IR) will not see the effect of this tax boost. The richest either, since the 5 million households taxed in the 30% bracket will see their tax cut capped at 126 euros per unit per year; while those, much less numerous, taxed in the two highest brackets of the scale (41 and 45%), will not benefit at all from the tax cut.
This Tuesday, Gérald Darmanin also announced that the income tax collection rate had reached 99.1% in 2019, with revenues of 71.7 billion euros. A higher amount of 1.3 billion than that which had entered in the initial finance law for 2019. The difference is explained by an income tax recovery rate higher than expected: 99.1% (before tax audits), against 98% forecast by Bercy.
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Cock-a-doodle Doo ? "Beware of the boomerang effect, warns on the contrary Vincent Drezet, spokesperson for Solidaires Finances Publiques, the first tax union. This surplus is linked to several complex mechanisms, such as the progression of the base from one year to the next - by making the tax contemporary, the State has gained a year of base - but let us remember above all that it will not be sustainable. Moreover, the 71.7 billion in income tax revenue for 2019 is 900 million lower than the latest estimates at the end of 2019. This difference is explained in particular by the modulation of individual rates at which taxpayers have process. The best proof that the withholding tax was adopted by the French.
