DP suggests end to tax advantages for couples
(CS/vb) Under an upcoming tax reform, Luxembourg could be doing away with privileges for married couples, Eugène Berger of the DP has commented.
Preparations for the tax reform will get underway over the coming weeks, with head of the parliament's financial commission Eugène Berger hinting that major changes could be made to the taxation of married couples.
Currently, married couples are treated as a single taxpayer and taxed according to their combined average wage. This model is advantageous especially for couples with a significant difference in income between partners.
However, Berger, who chairs the parliament's finance commission, has now said: “We want to end this type of ideological taxation,” adding that tax should not be calculated based on individual lifestyle choices.
Instead, the government is aiming for individual taxation, under which it would not matter whether the taxpayer is single or married. The presence of children in a household, however, would continue to be taken into account, Berger said.
The MP also acknowledged that it would not be possible to suddenly axe tax advantages for couples already married, but said that a transition period or staggered model would have to be considered.
The suggestions by Berger are not, however, the final word. Rather, they present a basis for negotiations, he said. Coalition partner LSAP has already voiced its support.
Speaking to the “Luxemburger Wort”, Labour Minister Nicolas Schmit said that current taxation models for married couples were no longer “up to date”, adding that they encourage one partner – usually the women – to stay at home after having children.
The tax reform is scheduled for 2017.
Finance Minister Pierre Gramegna earlier this week said that it should lead to lower contributions for individuals and companies.