T
he government introduced a further tax reform. It is to be hoped that this time alone – like the last time – private companies will be asked to participate. It is also to be hoped that the announced result will, in the end, agree that there should be no horse and that even many citizens would be better off taxing. This statement naturally raises the question: where to take and not to steal ?! “Such a reform would cost the state a damn money! Where does the government want to go?
The unions are of the opinion that work is too taxing compared to capital. CGFP, OGBL, LCGB repeatedly point out that the 3: 1 ratio to the detriment of private individuals is an absolute injustice which must be created by the world; With that attitude, their chances are of course lower, with them being invited to the tax table. But the government already seems to know, and what direction the reform should go. In this program, it means, among other things: “The introduction of barème impoté unique vice payment to all of the taxation of personal physics and a private of the categories of personal vulnérables, tout a tenant compte de la présence d’enfants à charge. Dance to both the equality and the predictability, the government much more than in favor of measuring compensatory appropriations and phases of transition “. That means nothing else, as tax classes are to be abolished. Faster said than done!
An old trick in tax reform is that you are happy to decide on tax relief on one side, but on the other you do not make any adjustment from the tax table to the price. This is perfectly possible for normal mortals: everyone is calculating their tax profit and does not realize that he has already been a loser in those circumstances. His fiscal profit is not net at all! This has happened more than once, for the last 2009 Minister for Finance Luc Frieden. In its leaflet “Fonction publique”, the CGFP has made very recent mention of it. The union is also pushing for a speculator tax of at least 5 percent. That tax would be meant for people who own a lot of real estate. I find this a good idea, and I believe such a tax should actually come down to 10%. It would certainly unleash the real estate market. The CSV in opposition says it might not get through, but is a DP- which has some other clientele willing – also willing?
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n addition, CGFP reminds us that the 3% reduced rate of VAT should be applied much more generously in the purchase of a first home: 17 years ago one could profit from a cost of 500,000 euros. € 375,000.
All too gladly, Luxembourg is referred to as the Emerald Lands. This is true for many people – especially for those in the “zone protégé” – but there is also a part of the population that has to wait more and more to get over the rounds. Just as I am in retirement, I am increasingly hearing those voices, have become aware of initiative with which to fight against “common injustices”. Often you hear extreme frustration there! A penal situation in life which one feels justified or unjustified as injustice suffices to defend against democracy, against government, against politics in general; there are certainly those who see it as a “sporting idea” and to recapitulate in the social media about “harshness and the world” of mornings and evenings, but I also know the others who simply came under the wheel, and who feel left behind by society.
The so-called middle class should become more flat, they say as well in politics as in the unions, for the simple reason that many people in the middle class are clamoring for and politicians mean a lot of votes. In 2016, there were over 18,000 taxpayers, with a net income between 100,000 and 200,000 euros, and that report around 900 million taxes. Three years ago, 53,000 people were living on an income of between 60,000 and 100,000 euros.
On the other hand, the employer is not tired of emphasizing that over half of the people pay smoothly and pay no taxes at all. In the table of the Economic and Social Council of 2016, there are always 238,000 people in the salary class of 0 to 30,000 euros. So almost a quarter of a million! Is much talk about these people? Are they an issue in the news? At any rate, these ciphers come from a clerk, in which patronage and unions also sit! The pooper is 3 years old, and it would be time to retire from the tirang.
The government decided to make the nursery and public transport free. That’s a huge burden for low-income people! Extremely positive is also the introduction of tiers-payer in the health sector, which also removes the financial pressure for many people. In that sense, further work must be done, not just on a fiscal plan, because there is little to be said for those involved.