The Cost of State Aid for Personal Services: A Closer Look at Tax Credits and Windfall Effects

The Cost of State Aid for Personal Services: A Closer Look at Tax Credits and Windfall Effects

2024-03-27 09:00:00

4.4 million people use personal services, which have benefited from 8.8 billion euros in state support. Studio Romantic / stock.adobe.com

Despite a real impact on undeclared work, State aid for personal services is too costly and mainly benefits wealthy households, judges the Court, which denounces a windfall effect and wants to overhaul the system . With savings of up to 1 billion euros.

This is a real stone in the pond that the Court of Auditors has thrown up by attacking a system very popular with families: the tax credit for home employment, nannies, cleaners, gardeners and other helpers. of life for the elderly that the French rely on in their daily lives. This system is considered too expensive, in a report published Wednesday, which recommends overhauling the aid system. An understandable barrage at a time when the government is looking for savings in all directions. But contradictory with the executive’s objective of freeing households from the constraints of childcare, to increase the employment rate.

Between the tax credit, reduced VAT rates and exemptions from social contributions, personal services benefited from state aid of 8.8 billion in 2022, an increase of more than 40% per year. compared to 2012, including 37% over the last five years. This represents on average 9.4 euros of aid…

This article is reserved for subscribers. You have 81% left to discover.

Flash sale

€4.49/month for 12 months

Already subscribed? Log in

1711535694
#Nanny #cleaning #gardening.. #home #employment #tax #credit #sights #Court #Auditors

Leave a Replay