Members of the European Parliament largely rejected eliminating the 10% tax deduction for pension funds

The proposal sparked protests from most of the left, but also among members of the RN-UDR and LR alliances.

After a nine-day break to review the Social Security budget, first reading debate on the Finance Bill (PLF) resumed in the National Assembly on Thursday, November 13. The deputies largely rejected, by 213 votes to 17, the abolition of the 10% tax reduction on pension funds, provided for in the government project, which plans to replace this tax reduction with a flat rate reduction of 2,000 euros.

According to the Minister of Public Accounts, Amélie de Montchalin, the aim of this action, the proceeds of which are estimated at 1.2 billion euros, is to create “solidarity between retirees” by enabling financing a “tax deduction of 1.6 million” for the simplest. But the proposal sparked protests, among most of the left wing, the RN-UDR alliance and LR deputies, who voted to remove the measure.

“It is impossible to attack the purchasing power (…) of those who have worked all their lives”said Laurent Wauquiez, boss of the Les Républicains (LR) group. Communist Nicolas Sansu warned that the measure would lead to an increase in taxes “from a monthly pension of 1,667 euros”. On the National Rally side, Jean-Philippe Tanguy criticized the proposal involving pensioners “the new scapegoat for a failing system.”

On the other hand, Macronis deputy Guillaume Kasbarian welcomed the proposal “brave” and punish those who do “reject” to delete “one of the many tax benefits for retirees” by “fear of the election”.