Question 11057 — income tax

Summary

Mr. Jean-Paul Dufrègne draws the attention of the Minister of Action and Public Accounts to the consequences of the implementation of withholding tax on tax credits. Indeed, from January 1, 2019, the withholding tax on income will not take into account tax credits. This mechanism is particularly penalizing for the lowest-income taxpayers, notably young couples or retirees who employ a childminder, a home helper or are housed in an EHPAD. These people will therefore see more taxes taken from their salary or pension than what they actually owe to the tax authorities. Certainly, the Government has already announced that a deposit of 30% on their tax credit should be paid to them from the first quarter while the remaining 70% will be transferred to them from the end of the summer. The fact remains that this cash advance promises to be heavy, even catastrophic, for many taxpayers. Three million tax households currently benefit from a tax credit linked to home services, 1.8 million from a tax credit relating to childcare, around 250,000 from assistance for accommodation in EHPADs, not counting those who combine several tax credits. For all these households, the tax exemption, a strong incentive measure for home employment, represents several tens of euros per month; euros which will temporarily swell the state's coffers but are missing from the taxpayer's wallets. Questioned on the issue, the Government recently responded that it was looking into fairer solutions. As such, a report from the General Inspectorate of Finance was to provide several avenues for to study. He therefore asks what the conclusions of this report are, what options can be drawn from it, if the monthly payment of credits and tax reductions is one of these options, and in this case, if a timetable has already been considered.

Machine translation from French. The official text remains authoritative.

Timeline

No timeline events have been ingested for this record yet.

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

No documents linked.

Sponsors

No sponsors or actors listed by the source.

Related records

No cross-record relationships stored yet.