Proposition 54K3482

Projet de loi modifiant le Code des impôts sur les revenus 1992 en ce qui concerne les dispositions fiscales relatives au deal pour l'emploi.

General information ¶

Authors

CD&V Roel Deseyn, Eric Van Rompuy
MR Benoît Piedboeuf, Vincent Scourneau
N-VA Jan Spooren
Open Vld Luk Van Biesen, Dirk Van Mechelen

Submission date

Jan. 22, 2019

Official page

Visit

Status

Adopted

Requirement

Simple

Subjects

fiscal policy youth employment wage cost overtime pension scheme social-security contribution tax-free allowance employment policy

Voting ¶

Voted to adopt

CD&V LE Open Vld N-VA MR PP

Abstained from voting

Groen Vooruit Ecolo PS | SP DéFI ∉ PVDA | PTB VB

Party dissidents ¶

• Olivier Maingain (MR) abstained from voting.

Contact form ¶

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Discussion ¶

March 14, 2019 | Plenary session (Chamber of representatives)

Full source

The rapporteurs are Mr Peter Dedecker and Benoît Piedboeuf. Return to the written report.

Colleagues, this bill implements the fiscal gap of the labor agreement agreed by the parties of Michel I in the summer of 2018.

That employment agreement includes a package of measures to activate people for the labour market and thus expand the supply of potential workers. It involves, on the one hand, measures to encourage work and reward work and, on the other hand, measures to facilitate the step into the labour market. For some people in a slightly more difficult position, this is not obvious. More and more employers find it difficult to find qualified personnel to fill the open vacancies. That filling of vacancies is crucial for the economy, but, more importantly, it is also crucial for the prosperity and purchasing power of the workers. It is also important for the financing of our social security.

The employment agreement also includes a social gap. We voted on this in the Social Affairs Committee yesterday. That leak will be treated here soon.

This bill deals with the fiscal measures of the labor agreement.

First and foremost there is the tax exemption for regional premiums for vocational training. In order to create an additional incentive for the pursuit of a vocational training which leads to a bumping vocation, this bill proposes, at the request of the Regions, for example, to exempt the premiums granted by the Regions or by the German speaking Community for the pursuit of such training from income tax up to a maximum of 350 euros. This is subject to three conditions: first, the premium is paid to persons who have started training as beneficiary unemployed persons; second, it must be a training to complete a difficult occupation; third, the training must have been successfully completed.

Chapter 3 provides another measure to expand the offer. This measure applies to a very specific target group and includes the exemption from the overflow of the enterprise advance fee in system shipping. Due to the specificity of the system shipping, these undertakings have not yet been able to make use of this exemption, which already applies, for example, to square work.

A third measure within the framework of this employment agreement is our proposal to increase the number of overtime treated taxally favourably temporarily, from 1 January 2019 to 31 December 2020, from 130 to 180. The existing increase to 360 hours in the catering sector continues to be ⁇ ined, as does the permanent increase to 180 hours for the construction sector.

Finally, in chapter 6, we address the most important chapter in this bill, the tax pension deficit and the activity deficit for pensioners. This retirement is not new. This is a whole historical evolution, which I will not overlook integrally. I have done this extensively from the canvases during the committee discussions, starting in 1962. I start now in 2007, because then the additional tax reduction fell away for a retired person who received a little more pension than the maximum unemployment benefit. 1 euro extra gross pension gave then after taxes completed 650 euros net less. The then Minister of Finance, Didier Reynders, solved this in 2007 by ensuring that 1 euro extra would never mean more than 1 euro taxes. At that time, however, he did not take into account the municipal options. As a result, it could still happen that 1 euro extra net still resulted in a lower pension than before. Minister Van Overtveldt resolved this in 2017, so that 1 euro additional pension would never mean more than 1 euro additional personal tax, including the municipal opt-ins. Due to the deduction of the additional tax reduction from a pension higher than 15 568 euros, these pensioners are still trapped in the pension failure. That problem came explicitly into the press when Minister Bacquelaine proposed to regularize school years for retirement, because for a lot of people that net would not mean an increase in their retirement.

In fact, this bill solves three problems.

First, the tax pension depreciation or the fact that a gross increase of the pension between 15 600 and 16 600 euros does not or hardly leads to a net increase. This includes approximately 128,000 pensioners. The gross increase in the pension can be the result of longer work, but also, as we have seen thereafter, of wealth envelopes which increase pensions, or of the purchase of academic years. The majority of complaints have been submitted to the Ombudsman for Pensions.

The second problem to be solved is the decline in activity for pensioners, or the fact that a pensioner with a pension of less than 22 000 euros per year loses his additional tax reduction from the moment he has also only 1 euro income. With a small side benefit, net remains even less.

Thirdly, the same problems occur in the case of an invalidity or sickness benefit exceeding EUR 17 297, since that first additional benefit of EUR 1 000 is then fully taxed. A benefit may not be combined with another income.

Several governments and finance ministers have failed to resolve this. The government-Michel I with Minister Van Overtveldt did so. For the N-VA, this has always been a priority. For us, it was unacceptable that the gross increase resulting from longer work would not be followed by a net increase in retirement. The government-Michel I has also ensured that pensioners from 65 years of age or after a career of 45 years can gain unlimited additional income from their pension, which can therefore cumulate with an employment income. So there are a lot more people who were faced with that tax pension crack.

The solution presented today will benefit mainly workers and self-employed from the lower to middle class. It applies both to people who are already retired and to the future influx of pensioners. If one asks how much progress is then effectively made, it can lead to a net pension increase of 15 to 50 euros per month, depending on the case.

The solution here proposed to finally resolve the fiscal pension deficit after four years actually addresses five unfair situations. I conclude my speech with that. More than 100 000 pensioners will also receive a higher net pension when the gross pension is increased. Second, working longer will always result in a higher net pension after taxes. The same applies to those who regularise study years. This is especially true for employees who accumulate a pension just above 1 250 euros, up to 1 850 euros per month. It is a very large group that falls in between. Third, surplus earnings by pensioners no longer lead to situations where net less remains after taxes. Fourth, pensioners with a maintenance benefit or a small real estate income will receive a higher tax reduction from now on. Finally, single disabled people could in some cases also face the aforementioned tax injustice. For them, this proposal also offers a solution.

The N-VA is therefore very pleased that we will get this proposal by the end of this legislature. We would like to thank the people of the Van Overtveldt Cabinet as well as the colleagues of the Swedish coalition, especially the chairman of the Finance Committee who has led everything in good shape to get this here in time in the plenary session.

I hope that this will be approved today, in the interests of many current and future pensioners.

Mr. Speaker, we look forward to seeing the tax section of the jobs deal pass today. The jobs deal is a coherent set of strong measures to boost employment, reduce unemployment and ensure the long-term maintenance of quality social protection for all.

In recent years, employment outcomes have been ⁇ positive. ONSS figures indicate that 44.206 new jobs were created in one year, of which 42.233 were created by the private sector. It is never seen! For the first time in decades, 7 out of 10 Belgians aged 20 to 64 are working. Despite progress in the decline in unemployment and in the number of jobs created, the unemployment rate remains high and the activity rate is still insufficient. At the same time, the number of vacant jobs continues to increase in our country. There were 141,700 in the fourth quarter of 2018. This is slowing down the economy and we need to provide answers. That is the job deal.

The first key point is coherence and complementarity with the initiatives of the Regions. The exemption from certain regional training premiums creates an additional incentive for the follow-up of a vocational training leading to a profession in shortage. This is an important support because unemployed people often find themselves in a difficult economic situation. The training incentive measure will increase their net income and reduce their tax burden. It has an economic and social purpose. For our group, employment is the best barrier against poverty and the best guarantee of increased purchasing power.

Then the number of extra hours with favorable tax treatment is temporarily increased from 130 to 180 hours. The existing 360-hour increase for horeca is ⁇ ined, as is the permanent 180-hour increase for the construction sector. This leads to a net wage increase for many workers.

As for employers, they will see their wage burden easing with the exemption from payment of the professional pre-count. This will give the possibility of further development and employment.

Finally, the pension measure is very positive because it corrects an anomaly that led to a decrease in net income in the case of revaluation of gross pensions, which was an aberration.

Creation of jobs remains the priority in the current legislature. The jobs deal is part of a dynamic of strengthening the social security and the purchasing power of workers. This is a series of favourable measures for both workers and employers. It is therefore with enthusiasm that the MR group will vote in favour of the bill and the social component that will soon come into session.