The National Assembly on Wednesday gave the go-ahead for the five billion euro drop in household income tax, a flagship measure in the 2020 draft budget decided after the "yellow vests" crisis. After nearly two hours of debate, the deputies adopted Article 2 of the draft budget law by 65 votes to 3, with 4 abstentions.
12 million households concerned
"The majority fulfills the promise of the President of the Republic" made in April at the end of the "great national debate", and down the imposition of "middle classes and popular classes," touted the Minister of Action and the Public Accounts Gérald Darmanin. The measure is intended to soften tax entry for new taxpayers, with a reduction of three percentage points in the first-tranche tax rate, which affects 12 million households, out of the 16.8 million that pay income tax.
The average gain per household in this first installment will be 350 euros. The five million households in the next tranche will benefit from an average gain of 180 euros. The thresholds for entry into the second and third taxable brackets will, however, be slightly lowered. Thanks to the reform of the withholding tax, the tax rate of each taxpayer will be included in the new scale starting in January, which will make the gains immediately perceptible.
Support right, criticism left
The right supported this drop in the income tax, while saying that there was "no tax gift of five billion euros". Especially because of growth and a tax now contemporary, "this leads to a tax increase when income increases," said Eric Woerth (LR).
The left has criticized the terms of this decline in income tax, the rebellious even seeking to remove this article from the draft budget, which "will make five billion less public spending" in the eyes of Eric Coquerel.