The package of measures agreed upon by the federal government on Monday is expected to multiply tax regimes rather than harmonising and simplifying them, which could lead to financial manipulation that is individually beneficial but collectively fruitless or even counterproductive, according to economist Philippe Defeyt in an opinion piece on the summer agreement’s measures.
Defeyt questions why a pensioner who works should be taxed less than one who relies solely on a salary despite having equal incomes. He also asks why overtime in any job should be tax-exempt, but not the night shifts of a nurse in emergency services, and why the tax credit for unemployed people should be removed while that for pensioners remains.
The economist argues that the democratic principle that one euro of income should be taxed the same as another will become increasingly obsolete. He highlights those who arrange to work one-fifth of the time in a flexi-job, allowing them to pay less tax on equivalent income, those who continue to channel their activities through companies to pay lower social contributions, and those who exploit copyright rights in the IT sector, noting that the lack of consistency undermines equity and public finances.
Defeyt also critiques one of the current government’s promises to ensure a wage gap of at least 500 euros between workers and non-working individuals. He points out this gap already exists in many situations and questions some of the summer agreement measures, which he believes do not support this aim, such as the option to work less than a third of the time and the end of night shift bonuses before midnight.
However, he acknowledges that granting the same tax credit for each child is a step in the right direction, although he regrets the measure will not be implemented immediately.
