a measure soon to be adopted?

From 1978retirees automatically benefit from a tax reduction of 10% on their pensionssupposed to compensate for professional expenses. However, unlike employees, retirees no longer incur costs related to professional activity. It is precisely this logic that pushes some to question this advantage, Notre Temps reported on January 10.

Gilbert Cet, president of the Retirement Orientation Council, recently relaunched the debate by evoking a deletion in an interview with Echoes the January 6. According to him, ending this reduction would free up around 4 billion euros per year for public finances, while protecting the most modest retirees.

Who would be affected by the removal of this reduction?

If this measure is adopted, it would not affect all retirees uniformly. The most modest retireesoften exempt from tax or lightly taxed, would not be affected. The impact would be more significant for the 20% of retirees with the highest incomesaccording to Pierre Madec, economist at the French Observatory of Economic Conditions (OFCE). According to his estimates, wealthy retirees could see their tax bill increase by 700 to 800 euros per year. On the other hand, the government could decide to exclude small pensions from this reform to avoid a penalizing effect on low-income households.

The president of Medef, Patrick Martin, also supported this proposal, judging “aberrant» that a retiree benefits from a tax reduction reserved for professional expenseson BFMTV. For him, this measure is part of a logic of tax fairness. However, for the moment, nothing has been done. However, the removal of this reduction could be one of the avenues envisaged to fill the public deficitespecially in a context of a sharp increase in public spending linked to the aging of the population and retirement pensions.