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The contribution on high incomes could bring in only 1.2 billion euros, compared to the expected 2 billion.

The contribution on high incomes could bring in only 1.2 billion euros, compared to the expected 2 billion.
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The 2025 budget measure, which targets the wealthiest households paying less than 20% income tax, will not achieve its objectives, according to a study by the Public Policy Institute.
Economy Minister Eric Lombard and Public Accounts Minister Amélie de Montchalin in January. (Xose Bouzas/Hans Lucas.AFP)

Another budgetary setback for the government. The differential contribution on high incomes (CDHR), a new tax created by the latest finance law to ensure that the wealthiest pay a minimum tax rate of 20% of their income, risks bringing in far less than the expected €2 billion. It would only generate €1.2 billion in revenue, according to estimates by researchers at the Institute of Public Policy (IPP), created by the Paris School of Economics (PSE), and would only affect 16,300 households (while the budget documents projected 24,300 tax households ).

And again, this is the upper range, these calculations assuming that liable taxpayers (those whose reference tax income exceeds 250,000 euros for a single person, 500,000 for a couple and who pay a rate lower than 20%) do not change their behavior – that they do not postpone, for example, the realization of

Libération

Libération

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