“In Belgium, the broadest shoulders quickly become broad as soon as you reach a certain income”

“Today, we very quickly reach over 50% taxes and the broadest shoulders quickly become broad as soon as we reach a certain income, which is not necessarily the income of a rich person. We try to see today how to change this progressiveness of the tax”, explains the economist.

50% taxes, really?

As there are many tax loopholes in our country, not everyone who pays more than 50% in taxes would really pay this 50%, recalls Maxime Binet. According to a calculation carried out by economist Philippe Defeyt, 10% of Belgians taxed at more than 50% would in reality be taxed at 29.6%.

“When we have such broad tax rates, we have to look at the microeconomic level of who is affected. It is precisely because the rates are very high that we make tax cuts which bring people into a atmosphere where they still want to work”, tempers Roland Gillet.

Arizona negotiators have been floundering on tax reform since they’ve been around the table. Do we absolutely have to achieve something or can we do without it? “We see today that despite previous tax reforms, labor income is still heavily taxed here. We cannot stay within the targets required by Europe in terms of budget deficit and, therefore, debt We are at 4.5% today and if we do nothing we will be at 5% tomorrow It is not new that Europe is asking us to make structural reforms, so clearly the next government. will face responsibilities”, says the economist.

Tax shift ou tax cut ?

If Vooruit and the CD&V want a tax shift, in other words a tax shift, the MR wants a “tax cut” which consists of a pure and simple tax cut. For Roland Gillet, former advisor to Charles Michel, a “tax cut” would be the solution that would delight the majority of people… in an ideal world.

“If we can have healthy public finances, which is already not the case, everyone would want a tax cut and therefore, a reduction in taxes. If we make a tax cut which benefits the entire creation of wealth in Belgium, we will have a GDP that grows more. If the pie grows, it is all the easier to make social spending. However, today, what is missing to have social balance. is to keep people always motivated to create value, in relation to people who receive and who must ask themselves the question of how they can also contribute”, notes the professor of financial economics.

Roland Gillet takes the example of independent workers who put their efforts at the service of the population, sometimes working 35 hours in 2 days and must, in addition, make capital available to their company. “If we take all of what they pay in relation to the efforts they make, is it sustainable if we still touch them?” he asks.

Wage indexation limited beyond a certain income?

Another issue that bothers Belgian bosses is that of salaries, which are said to be too expensive in Belgium. The automatic indexation of these salaries, which concerns certain workers in January 2025, is particularly singled out. To the point of leading towards reform?

“If we want to put everything on the table, why not put the indexation at the level of a certain income? I think we can keep the indexation for the lowest paid people. And then, we will have to negotiate. If I have to make an effort, I would find it normal to no longer be completely indexed from a certain level of income”, concludes Roland Gillet.