Lucie Castets stands against the abolition of tax relief for pensioners, while advocating for safeguarding small pensions.
Fresh Article:
Lucie Castets, a previous contender for Matignon following the dissolution of the National Assembly, voices her support for scrapping tax deductions for wealthier retirees as a means to bolster the 2026 budget.
© BASTIEN OHIER / Hans Lucas By Thibaud Hue Updated on
While the government is seeking €40 billion in savings to craft the 2026 budget, it's considering axing tax deductions for pensioners. During an interview on Franceinfo on May 2, Lucie Castets openly discussed her stance on this matter, stating that she's "not against" this measure affecting the top 10% of retirees. Nevertheless, she emphasizes her intent to shield "the most modest retirees."
According to her, those drawing pensions of €2,000 to €3,000 per month or less should expect reduced tax deductions. The remaining retirees, with lower pensions, would be immune to this potential budget cut. "We demand a major tax reform that allows us to lessen taxes for some and boost them for others," Castets added.
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Abolishing the existing cap at €4,399 per tax household, the deduction would decrease past the 10% threshold for annual income exceeding €43,990 (for one tax share). A retiree with a €20,000 annual pension would consequently face a taxable income rise of €18,000 to €20,000. Based on the French Observatory of Economic Conjuncture (OFCE) estimates, the typical annual increase in taxes for the twelve million impacted households could vary from €10 to €860, depending on their financial resources.
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In and around this article ⚛️ retirement 💸 Income tax ⚒️ Retirement pension
Enrichment Data:
- Elimination of Tax Allowance: A proposal is circulating to eliminate the 10% tax allowance for all retirees, costing the state around €4 to €5 billion annually[1][3]. If this proposal materializes, it would impact all retirees irrespective of their wealth level.
- Targeted Taxation of Affluent Pensioners: There are discussions about imposing new taxes on well-off pensioners to help curb France's deficit. This could entail implementing taxes specifically targeted at high-income retirees[2].
- Budgetary Context: The French government aims to lower the national deficit from 5.4% of GDP to 4.6% by 2026. In order to achieve this, various tax modifications, including those affecting retirees, are being explored[3].
If Lucie Castets has posited specific measures, they are not detailed in the data sought.
- Lucie Castets, a former political candidate, has spoken in favor of abolishing tax deductions for wealthier retirees as a means to strengthen the 2026 budget.
- Castets proposed reducing tax deductions for retirees with pensions above €2,000 to €3,000 per month, aiming to protect the most modest retirees from budget cuts.
- In this context, she advocates for a comprehensive tax reform that would lessen taxes for some retirees and boost them for others.
- The proposed change would also affect retirees with an annual pension of €20,000, leading to a taxable income increase of €18,000 to €20,000.
- With these potential changes in policy-and-legislation, personal-finance for retirees could be significantly impacted by politics, particularly in the realm of general-news and finance.
