The Bart de Wever – Bouchez project includes a tax component, which undertakes to give “more net salary” to working people. In exchange for what? A reform that costs the State dearly, an increase in the price of groceries, a removal of tax advantages. What is given with one hand is taken with the other, and largely. The rich are spared. Analysis.
“They said throughout the campaign that they wanted to reward working people. However today, we are seeing direct attacks on the salaries of workers, especially those who work in difficult conditions, at night and on weekends. Added to this: a tax reform which is a real waste for public finances, an increase in the price of groceries and a loss of the marital quotient! And pensioners are the ones who lose the most. »
Thierry Bodson
The increase in the exempt quota: giving with one hand
One of the tax measures that is on the table is the increase in the tax-exempt portion (the portion of income on which we do not pay taxes would increase from €10,570 to €15,461). This would allow an increase in net income of maximum €110/month, for any worker who has a minimum salary of €1,750/month (if the salary is lower, the amount of the increase is proportional).
Note that the same amount of €110 would also be allocated to the worker who receives a monthly salary of, for example, €10,000/month! This explains that the overall cost of the possible implementation of this measure would be excessively high for public finances: of the order of 10 billion euros.
The FGTB is not, in principle, opposed to such an increase in the exempt portion. As long as it is focused exclusively on low and medium salaries, as has already been the case, between 2009 and 2020. A measure which had obviously been removed by the Michel-De Wever government!
Likewise, second measure on the table, the removal of the 40% tax bracket and therefore the widening of the 25% bracket up to +/- €28,000/year would make it possible to increase the net salary of workers. and workers (from €2,075 monthly salary) of around €100/month. Again, the same amount would also be given to people who earn high salaries. Consequently, the budgetary cost of the measure would be enormous!
All this has to be paid for… How?
Everything else: take from the other
VAT on essential products increases
This is the simplest measure to understand: the price of all food products – excluding fruits and vegetables – but also energy, pharmaceutical and everyday consumer products will increase. In question, an increase in VAT from 6 to 9% on all these products. If we base ourselves on the current “housewife basket” established by the “2022 household budget” survey (source Statbel), this represents an additional expense of €116 per year and per person, just on these products. essential. That is 10€ per month and per person; This may seem anecdotal to some. But not for a family of 4 people who, regardless of their income level, will see their supermarket bill increase by 40 euros per month!
The end of the “marital quotient”
What is it about? To reduce the tax burden on certain married couples, the law has provided for a special provision: the marital quotient. It applies in cases where one partner has less income than the other, or no income at all. Let’s think about people where one (often the wife) works part-time, the other full-time. In this case, thanks to the marital quotient, the total amount of taxes will be lower than what this couple would have paid if they were considered as two single people. This is an advantage automatically granted by the tax authorities: you should therefore not ask for it. And this is far from being a detail: the measurement concerns 500,000 households in Belgium. Note that this advantage can concern both employees and a couple in which one of the two is independent and has had a difficult year economically!
What if it is deleted? The financial loss will be €125 per month for a couple where one works part-time and the other full-time. And up to €600/month for a retired couple.
Pensioners and beneficiaries cheated
Welfare recipients and pensioners will be the first victims of Arizona’s planned tax law change. For what ?
- The increase in the exempt quota does not concern them, while the increase in shopping is for everyone!
- For people who benefit from an annual pension greater than €19,000/year (and who therefore pay taxes), Arizona provides a reduction in the tax reduction from which they currently benefit. The goal? Achieve budgetary savings of €450 million/year on the backs of pensioners
And the “non-taxation” of capital gains?
What was discussed? The capital gains tax proposed by the De Wever note is very low and would, in fact, be paid by very few taxpayers, and would only allow limited tax revenue to be collected. Whereas a system without loopholes or deductions, and with a higher rate, would make it possible to generate several billion euros which could in return finance a significant reduction in the taxation of labor income.
Finally, such shift tax would have the effect of put an end to a Belgian exceptionsince our country is one of the only ones in the European Union not to tax capital gains, even though it is the country where the tax pressure on earned income is the highest.
Business manager: will you take a little more?
While the work of the High Council of Finance and the National Bank of Belgium has perfectly demonstrated that the level of tax and social contribution of business managers and self-employed people was much lower than that of employees, the De Wever-Bouchez-project Prévot wants to continue to reduce their contribution to the financing of our society. A deduction for entrepreneurs, for the self-employed on a primary or secondary basis, is thus put on the table. They will be able to deduct from their taxes 20% of their profits or professional gains, with a maximum of €20,000.
