The government will not freeze the income tax scale in 2027. The spokesperson for the executive, Maud Bregeon , confirmed that it would be fully indexed to inflation, while Sébastien Lecornu promises not to create any new taxes in the next budget.
Avoid an automatic tax increase
“We will propose indexing the income tax scale to full inflation, not just partial inflation,” assured Maud Bregeon . According to the government, a freeze would have resulted in some households moving into a higher tax bracket or increasing their taxes even though their income increase would only offset inflation.
The government intends to present this decision as consistent with its promise not to raise taxes. The spokesperson stated that it was "out of the question" to adopt a measure that would automatically result in a tax increase for taxpayers.
Still 30 billion euros to find
This decision, however, further complicates the budget equation. The government is still seeking approximately €30 billion in savings to reduce the deficit and contain the growth of public debt. Efforts will therefore likely focus more on public spending and other measures currently under discussion.
The upcoming budget is thus shaping up to be one of the last major economic decisions of the five-year term. Just months before the presidential election, the government is attempting to reconcile deficit reduction with the rejection of a general tax increase, in a context where purchasing power remains a primary concern for the French.
