At the table the tax scale price

Looking at the middle class, the government is planning the reductions in direct taxes that will be implemented in 2026, putting the tax scale scenario on the table.

In recent years, inflation and non -price taxation have burdened employees and retirees. While they saw their earnings grow, their actual income decreased as they were charged with higher taxes due to non -adjustment of tax scales. Inflation and taxes have been rooted or in some cases eliminated income aid.

Much of the increases in wages and pensions was « eaten » by the tax office through the significant increase in tax deductions. The increase in incomes automatically led taxpayers to a higher tax step, without it being accompanied by substantial tax changes to their benefit.

In recent years, the government has abolished the solidarity levy for all taxpayers and business fees for professionals. However, the tax scale has remained unchanged by 2020, when it was last adjusted for the last time, resulting in any rational income increase leading to a faster increase in tax and, consequently, to rocket the disposable income. The latest interventions on the tax scale mainly favored freelancers and self -employed, as the implementation of the 9% rate for the first 10,000 euros in their income had an annual benefit of € 1,300, while for taxpayers with no children with income from € 20,000 to 50,000 euros.

Tax scale price is significantly reduced by tax burdens. Since the consumer price index has increased by 20%from 2021 to the present day, a corresponding increase in the first scale would give taxpayers substantial « breaths ».

For example, if the first 10,000 euros of tax scale, which applies a 9%tax rate, were increased to 12,000 euros without any intervention to the rates, then:

• The charge for a retiree with an annual income of EUR 11,000 is limited by EUR 343 to 231 euros,

• For an employee with an income of 12,000 euros the tax from 563 euros is reduced to 303 euros,

• For an employee with an annual income of 15,000 euros the tax is « clipped » at € 963 from 1,283 euros,

• The benefit of an employee without children and with an income of 20,000 euros will be greater, as his tax burden of 2,483 euros is cut at 2,063 euros.

Changes in the tax scale are expected to « lock » in the summer when the financial staff has a clear picture of the fiscal space that will fund the benefits included in the TIF basket.