Tax cuts and social aid: a very variable benefit according to the French

Posted Nov 22, 2022, 6:00 PMUpdated Nov 24, 2022 12:49 PM

All the tax and social measures implemented by the government have increased household disposable income by 12.7 billion euros in 2021. This is shown by an INSEE study published on Tuesday, which has measured the contribution of the systems in force in 2020-2021. The methodology consists of comparing what has been done with a scenario in which the French would not have benefited from any support measure. In detail, last year, an individual recorded a gain of 280 euros on average. It reaches 600 euros on average on a family scale.

The study indicates that “90% of this increase comes from permanent measures, mainly related to direct debits”. Among them, the reduction in the income tax rate for the first bracket of the scale, with a rate lowered from 14% to 11% in 2020. This was one of the government’s flagship measures to support the middle classes to the crisis of the “yellow vests”. Another tax gesture taken into account: the continuation of the housing tax relief in 2020 and 2021. The indexation of certain benefits, the revaluation of the minimum old age or the extension of the youth guarantee in 2021 complete the list.

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