The government had already adjusted its scale by taking into account 5.4% inflation in 2023.
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The government plans to index the income tax scale to inflation in its 2024 budget. “I confirm to you that we will index the income tax scale to inflation, that is to say 4.8%”, declared the Minister of the Economy Bruno Le Marie, Tuesday September 12 on LCI.
The government will therefore review all the thresholds of the different income tax brackets in order to integrate the general increase in prices. This measure makes it possible to avoid increasing taxes despite salary increases linked to price increases.
“Some will even pay less taxes”
“No employee will pay more taxes and some will even pay less taxes”continued the Minister of the Economy, who clarified that this measure “represents almost 6 billion euros of shortfall for the state budget”. In 2023, the government had already adjusted its scale by taking into account 5.4% inflation.