2023-09-12 06:35:40
The Minister of the Economy confirmed on LCI that the income tax scale will be indexed to inflation in 2024. “This represents almost 6 billion euros of shortfall for the state budget” , he said.
“No employee will pay more tax and some will even pay less tax.” Alex Reed this Tuesday on LCI, Bruno Le Maire confirmed that the income tax scale will be indexed to inflation.
“I confirm to you that we will index the income tax scale to inflation, that is to say 4.8%,” declared the Minister of the Economy, which corresponds to the forecast of the evolution of the consumer price index excluding tobacco between 2023 and 2022.
6 billion euros in shortfall
This measure will ensure that taxes are not increased despite salary increases linked to price increases. Thus, an employee who has seen his salary increase in line with inflation will not pay more tax, while an employee who has seen his salary increase less than inflation will see his tax level decrease slightly.
“This represents almost 6 billion euros of shortfall for the state budget,” added Bruno Le Maire.
According to Bercy, not indexing the income tax scale to inflation “would make 320,000 new households taxable (…)”.
The government had already increased the scale by 5.4% in 2023, preventing the poorest French people from falling into the scope of income tax due to salary increases linked to inflation.
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