Increased taxes for pensioners: Gerald Darmanin proposes a financial ministry countermeasure
Let's talk about that tax abatement for retirees, eh? 👴💸
The pow-wow lately's been all about scrapping this sweet tax break for geezers in the 2026 budget. Gerald Darmanin, our Justice Minister, seems a tad skeptical about it.
While the Rassemblement pour la France (LR) deputies are warning they won't green-light the budget if this tax break's axed, old Gerry himself ain't exactly keen either. During his appearance on the franceinfo show last Thursday, he hinted that yanking this lifeline for retirees might not be the best move.
He started by admitting that, yep, "social spending's gonna be where we need to cut back," but then he got a bit mushy and said, "there's a retirement problem, but not necessarily a retiree problem." Wut? He went on to say something about trying to solve the retirement issue without slashing retirees' benefits, and that quick budget cuts ain't the long-term solution. Long story short, he reckons it's high time to shake things up.
A whole new retirement ball game? 🤔
Gerald's on a mission to overhaul the retirement system by introducing a system with a huge savings component. He's picturing a two-pronged approach: one for today's retirees (who'll be funded by current contributions) and another for future retirees (who'll save for their own retirement).
Amélie de Montchalin, the Public Accounts Minister, also chimed in on the topic and didn't shoot down the idea of canning the 10% tax break retirees currently enjoy. Essentially, this means some retirees would pay more income tax, and others would be taxed who aren't today.
She wrapped things up on a philosophical note: "It shouldn't be your age that decides your contribution, but also your means." By doing so, she's apparently hinting that we should think about our ability to contribute beyond our age.
So, there you have it, folks! It looks like old age ain't gonna be a free ride anymore. Why not give our simulator a spin to see when you'll be sailing off into the sunset on a full pension? ☀️
- The Justice Minister, Gerald Darmanin, is proposing a revamp of the retirement system that includes a savings component, aiming to address the retirement issue without reducing retirees' benefits.
- Darmanin suggested that the tax abatement for retirees should not be eliminated, as it may not be the most effective long-term solution.
- Amélie de Montchalin, the Public Accounts Minister, suggested that the tax break retirees currently enjoy could be abolished, which would result in some retirees paying more income tax and others being taxed who aren't currently.
- In the upcoming budget, there is a discussion about reducing the tax break for retirees, and this proposal is causing hesitancy among some politicians, including Gerald Darmanin and the Rassemblement pour la France (LR) deputies.
- The Finance Minister's suggestion to redefine the retirement system could lead to a significant change in the way people think about retirement, considering one's means and ability to contribute, rather than just age.
