Proposed new tax bands for next year

[NormanH]

http://www.midilibre.fr/2014/10/16/les-deputes-votent-la-suppression-de-la-premiere-tranche-de-l-impot-sur-le-revenu,1066980.php

Selon le site Droit-Finances.net, en 2014 > 2015 le barème de l'impôt devrait être le suivant :

Jusqu'à 9 690 € : 0%
de 9 691 à 26 764 € : 14,00%
de 26 765 à 71 754 € : 30,00%
de 71 755 à 151 956  € : 41,00%
au-delà de 151 956 € : 45%

[woolybanana]

Not much reduction there then, even an increase perhaps. Oh well, gotta pay for the perks of the fonctionnaires and for the ladies to have babies.

[idun]

Are these figures after the abattements etc?

[NormanH]

I think it is just the bands that change, with the abolition of the first one of 5.5%.

I don't see anything about changing the other things.

[Gardian]

The intention and effect is to take a lot of people on lower incomes out of tax or to have a lower liability.

I'll play around with some trial numbers tomorrow and see what the effect is.

[idun]

[quote user="NormanH"]I think it is just the bands that change, with the abolition of the first one of 5.5%.

I don't see anything about changing the other things.

[/quote]

Thanks, I was just wondering.

[pomme]

[quote user="Gardian"]The intention and effect is to take a lot of people on lower incomes out of tax or to have a lower liability.

I'll play around with some trial numbers tomorrow and see what the effect is.[/quote]

The 14% band will start at 9,690 euros rather than 11,991 euros as in 2014.

There are some tables showing the effect on single, couples, families with 2 and 3 children at the bottom of this page:

http://www.capital.fr/finances-perso/actualites/impot-sur-le-revenu-qui-seront-les-grands-gagnants-de-la-reforme-de-2015-968116

[Gardian]

I've done some comparisons between 2013 & 2014 on the basis of these (proposed) revised bands.

Assumptions made:

• These are for a couple, both over 65
• No investment income, nor any additional allowances (e.g. charitable donations)
• No change to any other abattements such as the decotement or age allowance (although there probably will be)
• The UK figure in brackets refers to the amount of the total which is 'UK assessible', i.e. govt pension

 I'm not going to bother to list them all, because the effect is obvious:

Income                            2013            2014

€20,000                               0                  0

€25,000                            €164               0

€25,000 (€5k UK)            €131               0

€30,000                            €1080         €1067

€45,000 (€10k UK)         €2320         €2388 

It simply means that the Government will be able to say that these measures will have taken x million people out of paying tax altogether. Nothing wrong with that and the effect on most others will be minimal.