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Questions surrounding pension taxation give rise to numerous debates. While some believe that seniors live well in France, with a largely decent standard of livingothers believe that we must continue to fight to protect them from inflation.
Today, we would like to return to an automatic tax advantage which concerns retirees. And this, regardless of their resources. Everyone is eligible. Thanks to this advantage, they can save several hundred euros. However, this advantage could disappear. And for good reason, he would above all arrange the richest people and would deprive the State of interesting revenues.
Should we touch retirees?
If we base ourselves on the latest statements from the government, the answer is affirmative. Faced with France’s financial situation, Michel Barnier wants to act quickly. In his sights, he wants to tackle basic retirement.
Normally, the latter benefits from an annual revaluation in January. But, for 2025, Michel Barnier is seriously considering postpone this increase for the month of July. This is obviously a big loss of income for seniors, since the government would deprive them of six months of increase.
To have
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But, for state revenue, this decision is interesting. Indeed, it would save 4 billion euros. Remember that some MPs are calling, for their part, to eliminate this annual revaluation for good.
Retirees are expressing their anger, and this is likely to continue. Indeed, the recent recommendations of the Mandatory deductions council (CPO) are moving in the direction of a new reform.
The end of a tax advantage for retirees?
Since 1979, retirees have benefited froman automatic 10% reduction on the income they declare. This measure, originally, aimed to reduce the tax burden on retirees, especially those with modest or average incomes.
In 2024, this mechanism allows you to deduct up to 4,321 euros from the tax basean amount not subject to income tax. Comparable to professional expenses deducted for active workers, this reduction represents a breath of fresh air for retirees.
However, according to the CPO, it mainly benefits the highest incomes. In fact, 30% of the total cost benefits the richest 10% of retirees. So, a major change could occur.
To have
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An inequality that needs to be resolved?
Faced with this inequality, the CPO proposes to condition this advantage on resource criteria, in order to make it a real tool of solidarity. However, the report does not detail either the precise scale or any additional revenue for the State. This is an avenue that the government could consider. Since he is looking for savings, this avenue could find favor in the eyes of Michel Barnier.
Before that, the National Assembly will debate this subject. As such, the National Rally (RS) has just tabled an amendment. This proposes to replace the current reduction with a flat-rate deduction of 1,000 euros for all retirees.
This debate is therefore likely to quickly gain momentum, as it touches on a sensitive issue: that of the taxation of retirees in a difficult economic context. Since the government assumes to pursue an austerity policy, we must expect strict developments.
