Against all expectations, parliamentary debates resulted in a compromise. In the Senate, several amendments preserved the principle of the 10% tax reduction, while setting a different cap on it. Many elected officials considered this approach more balanced.
The maximum cap on this tax allowance, initially planned at a lower level, was ultimately raised to protect modest and average pensions. In short, the tax advantage remains intact for the vast majority of retirees, while only those with higher pensions will see this benefit gradually reduced.
This approach was defended by the general rapporteur for the budget in the Senate, with the idea of asking for a targeted effort, without weakening those whose budget is already constrained.
Retirement below $3,000: what changes in practice
This is where the good news becomes clearer. If your total pension does not exceed approximately €3,000 per month, the 10% allowance would continue to apply almost exactly as it does today. In other words: no tax increase related to this reform, contrary to what was feared.
For pensions just above this threshold, the impact will exist, but will remain more moderate than in the initial scenario of the flat-rate tax. This difference can represent several hundred euros per year, and it matters when every expense is calculated.
This decision was also welcomed by Roland Lescure , who sees it as a return to the spirit of the initial project, while preserving the proportionality of the effort required.
