• Hirom@beehaw.org
    link
    fedilink
    arrow-up
    0
    ·
    edit-2
    24 days ago

    Individuls earning more than €250,000 a year and couples with a joint income of more than €500,000 will this year pay a minimum 20% income tax

    My understanding is that it’s not a new tax, but a 20% minimum income tax for high earners. It’s a limit on how much income tax optimisation high earners can do.

    Given the income tax rate in France, and a quick calculation, a single person earning €250000 should have a base income tax rate of ~35%. This is without any tax rebate, without any tax optimization.

    So high earners who aren’t doing lots of tax optimisation should already have an incoming tax that’s higher than 20%.