Lower tax for maximum 4,000 euro earners? LFI’s Financial Revolution Gas Plant – Liberation

On paper, the “tax revolution” led by LFI looks like a transition from five years ago. It still holds about three pillars and a promise. The three pillars are the biggest progressive in income tax (14 brackets instead of 5 today), a CSG progressive, but also a reform of the family quotient, which will be replaced by a handful of tax credits of 1,000 euros per child. The first two, and the third to 1,500. And the promise is that anyone who earns 4,000 euros or less, thanks to this reform, will be a winner over the current system.

In reality, however, there is one big difference between the 2017 version revolution and the 2022: children. In 2017, the ancestor of Désintox Check News, A rabbit was raised during the presidential campaign. As we have seen, the promise of tax deductions for those earning less than 4,000 euros was only valid, indeed, for people without children. The rebels were careful not to say anything. Because? The abolition, in their reform, replaces the family quotient – now proportional and high-income advantage – and by a flat tax credit. But if this last part of the tax revolution benefits the most humble families, it penalizes wealthy families, including children … some of whom earn less than 4,000 euros per person. For the latter, the loss associated with family share reform outweighs the potential gain associated with the other two aspects of reform, thus creating an overall negative balance.

After looking at the tax calculator, we realized that people earning, for example, 7,000 euros for two, paid more taxes with the tax revolution because of their children. At least the rebel officials on the tax calculator were qualified to correct “excluded lies.”

Five years later, the tax revolution is still on the rebellious agenda, but the promise of tax cuts for those earning less than 4,000 euros per month has now been extended to parents. Thus, according to the 2022 simulator, two people in a couple earn 3,500 euros, regardless of the number of their children (two children here) will be the winner compared to the current situation.

Miraculously, the three pillars of the tax revolution seem to have remained unchanged (passing from 5 to 14 brackets to convert IR, progressive CSG, and family quotas into child tax credits), was LFI able to extend its promise? To parents? The answer lies in a “correction” method, which is somewhat like a gas plant and is seen to work in a tax simulator. In fact, the establishment of a child tax credit instead of a family quota is maintained … except in cases where its application would affect taxpayers earning less than 4,000 euros. In this case, the old system prevails. This sometimes leads to uncomfortable discrimination in treatment.

Let’s say a person earning 2,500 euros has a relationship with the same earner. The following four simulator screenshots show the couple earning কর 4,474 if they have no children. If we add a child, it increases to 3,474 euros. If we add a second child, it increases to 2,474 euros. With three children, the income tax falls to 974 euros (the credit reaches 1,500 euros per child from the 3rd child). We find here the application of a certain credit offer instead of the family quotient. The benefits associated with this child tax credit do more than compete with the benefits associated with the family quotient in the current system and allow the couple to be the overall winner by adopting two other measures (reform of the income tax scale and the progressiveness of the CSG).

Things change when we move in with 7 3,750 per couple members. This is a level of income, albeit less than 4,000 euros per month, where taxpayers, if they have children, will be punished by the rigorous implementation of the tax revolution for reforming their family quotas. But as we see in the simulator, the couple wins (although it is very modest) regardless of the importance of their children. Whether he has one or three children, the profit will be the same as the current tax: 94 euros per year.

To achieve this, the couple members are protected from the implementation of the tax credit per child, and see themselves applying for the equivalent of the current system for each birth. And significantly higher than the tax credit. As shown in the screenshots, the first child will lose an IR of 1,245 euros (IR goes from 11,277 euros to 10,032 euros)… when the tax credit is supposed to be 1000 euros. The second child made 1,527 euros lower income tax (from 10,032 to 8,505). And the third child sinks the IR of 3,054 euros (8,505 to 5,451 euros). Those values ​​are, in fact, “locked” in the current system.

This process certainly makes it possible to honor the rebellious promise, but at the cost of an amendment that seems to be a priority, not very fair. In fact, people earning up to 3,000, 3,500 and 4,000 euros will enjoy the equivalent of the current family quotient system … far more than those who earn 2,000 euros will benefit from a 1,000 euro tax credit per child (3rd to 1,500). ) Provided by reform. A small paradox where, precisely, the rebels wanted to end the proportional aspect of the family quotient reform, which was in favor of higher incomes. When asked about this point, LFI believes the picture needs to be looked at as a whole, and thanks to the benefits that everyone benefits from the reform of the IR or CSG.

This corrective process is sometimes not without creating spectacular threshold effects. And especially because it shuts down immediately when a person earns more than 4,000 euros per year. Outside of this monthly income, and the simulator shows, we come back to a strict application of a tax credit of 1,000 euros per child, without the thought that it would increase the tax bill, since the individual earns more than 4,000 euros and so no worries influenced by rebellious promises.

Thus, the treatment difference between a person earning 4,000 euros and a person earning 4,001 euros is displayed in the simulator, Caricature.

Suppose a person earning 4,000 euros and living with someone of the same income. Our taxpayers are still ‘on target’ of promises. Since the child tax credit system will cost him money, he has avoided this part of the reform and is benefiting from similar benefits to the current system: 1,527 euros for the first child, 1,527 euros for the second child, 3,054 euros for the third child.

The person earning 4,001 euros in exactly the same financial situation (within one euro)… but he “abandons” the goal of the promise. So it is little important that the tax revolution increases its taxation. So he would take the family share reform “full pot”, and be “satisfied” with a tax credit of 1,000 euros for the first child, 1,000 euros for the second, then 1,500 euros for the third.

Contacted, the LFI program team warns against the fact that the simulator is only a “Educational Tool”, That you shouldn’t believe it “Nearest Euro”, And that a tax reform can only be designed in detail by accessing data from Bercy. However, continuing the same source, what we observe in the simulator clearly reflects the future process of reform. Which, of course, made the video an overnight sensation. Prices, therefore, include taxpayers with children of these gas plants.

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