2023-06-19 10:04:51
Who would lose? Who would win?
All wage earners would gain, the low, the middle as well as the high earners. On the other hand, there are losers with the extension of the tax-exempt quota, the basis for calculating the additional amounts that go to the regions. This quota would decrease, which means less money for the federated entities.
Another loser in the deal: those who don’t work. “It is obvious that all people who do not work for whatever reason are going to loseconfirms Giuseppe Pagano, professor of public finance at UMons. Etca still concerns a lot of people; of course the unemployed, but also pensioners, men and women who freely choose not to work in order to take care of their children, there are students, so there is a whole series of people who will find themselves with more costs in their expenditure and no more revenue.”
With the harmonization of VAT rates at 9%, do we not also risk taking back with one hand what we gave with the other?
If your net salary increases, but many products cost more, the conclusion is obvious… But for the economist Etienne de Callataÿ, it is necessary to put things into perspective: ihere is a very big mistake about the social impact of a VAT increase. This is because most people in Belgium, social recipients to begin with, but also all employees, benefit from automatic indexation. When VAT increases, your income increases accordingly. That doesn’t mean there wouldn’t be losers. The losers of the VAT increase will be those who consume proportionally more of the goods concerned. And there will be winners, those who proportionally consume less of the goods whose VAT will increase.“
This weekend was not decisive but is this reform really necessary?
For economists, yes. It is essential: for purchasing power, to make work more attractive than unemployment. But it cannot be done in two strokes of a spoon: “on cannot, one year before the elections, make a major change, says Bruno Colmant, economist and professor at Solvay. I believe that the only thing on which everyone more or less agrees is that we must increase the non-taxable minimum to better remunerate work. But changing the tax scales in a fundamental way, in a weekend, is not even thinkable. In 1962, when we did the big tax reform, it took five years to perfect. So we can’t do it in two days.“
The government has given itself until July 21 to land on this thorny issue of tax reform.
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