Many retirees could thus pay more taxes.
This is an automatic benefit, from which all retirees benefit, regardless of their income level. In reality, few people know about this discount. Every year, taxes give seniors a gift and allow them to save several hundred euros. An advantage from the world of work, which continues in the “afterlife”, but which could live its last hours.
A proposal is in fact to put an end to this tax gift, which costs the State more than 4 billion euros each year. In a context where savings are being sought at all costs, this could be of interest to the government. But studying a new measure going against the pension portfolio seems explosive.
After the postponement of the increase in pensions from January 1 to July 1, Michel Barnier and his teams could be tempted to look into the latest recommendation made by the Council for Compulsory Deductions (CPO), a branch of the Court of Auditors.
Since 1979, during each income tax return, the amounts indicated for taxes are automatically reduced by 10%. A measure introduced at the time by Raymond Barre, intended to reduce the tax burden on retirees, particularly those with modest or average incomes.
Every year, up to 4,321 euros (2024 ceiling) can be deducted from the income tax calculation base. So much money which is therefore not subject to any tax levy. A boon for pensions, in line with professional expenses automatically deducted for workers. However, according to the CPO report, this system mainly benefits higher incomes. 30% of the cost of the measure benefits the richest 10%.
Faced with this observation, the CPO questions the usefulness of the system and instead proposes granting it subject to means testing, so that it truly plays a role of solidarity. Without proposing a scale or even estimating potential additional revenue for the State.
The subject could very quickly be addressed in the National Assembly because the RN has tabled an amendment aimed at replacing this reduction with an automatic deduction of 1000 euros for everyone. Enough to increase tax revenues from the richest. But the party has not quantified the potential gain.