By deciding to index the tax to inflation, the State deprived itself of a financial return. This gesture will cost more than 6 billion euros according to the Minister of the Budget.
6.2 billion euros less for the State
With the surge in inflation, the government decided on an arsenal of measures to protect the French as much as possible. One of the most important: an indexation of the income tax scale for 2023. To put it simply, the level of the brackets will be raised to take into account the consequences of inflation. And in particular the rise in the minimum wage. With several boosts during the year, lPeople earning minimum wage should have paid taxes.
With this indexation up to the price increase, they will be exempt. A tax justice measure for the government but which has a significant cost. According to Budget Minister Gabriel Attal, this measure will cost the state 6.2 billion euros. The money will not come directly from the accounts of France, it is rather that it will not return there.
Do not fight the salary increase
At the same time, this indexation should allow households who have seen their income increase in one year not to pass on the bracket above and therefore to pay more taxes. The Minister of Economy, Bruno Le Maire had already warned this summer considering that he was ” out of the question that employees, French people pay more income tax with inflation “.
Clearly: those who have been increased by their companies because of the rise in prices will see their tax assessment reduced in 2023. Finally, this measure is also advantageous for those who have not been increased for a year. For instance : a person who earns 2,500 euros per month, whose remuneration has not increased, will pay 328 euros less in taxes.