Particle.news
Download on the App Store
8 ARTICLES
·
5d ago

French Government Weighs Ending 10% Tax Deduction for Retirees

The proposal, aimed at addressing a record deficit, has sparked resistance from unions, opposition parties, and some centrist lawmakers.

Dans une interview au Parisien, Amélie de Montchalin a évoqué la piste de la suppression de l’abattement fiscal de 10 % dont bénéficient les retraités.
Image
La ministre française du Travail, de la Santé, des Solidarités et de la Famille, Catherine Vautrin, à l'Elysée le 19 mars 2025.
Image

Overview

  • The French government is considering removing the 10% tax deduction for retirees, a measure that could save nearly €5 billion annually for the 2026 budget.
  • The deduction, introduced in 1978, benefits around 15 million retirement households and was designed to align retirees' tax treatment with that of active workers.
  • Unions and opposition parties warn that eliminating the deduction would increase taxes for 8.4 million retirees and make 500,000 currently non-taxable households liable for taxes.
  • The Public Accounts Ministry supports the measure as necessary for deficit reduction, while the Economy Minister opposes broad tax hikes, reflecting internal governmental divisions.
  • Business leaders, including the heads of the Conseil d’orientation des retraites (COR) and Medef, back the proposal, calling the deduction outdated and misaligned with current fiscal priorities.