Family allowance could be taxed
Minister admits advisors are looking at changes to the structure of welfare benefits
FAMILIES could be taxed on their family allowance benefit under plans being studied by the government as it moves to improve its finances.
Didier Migaud, the president of the state audit body, the Cour des Comptes, had suggested that taxing family allowance should be looked at and Families Minister Dominique Bertinotti admitted officials were examining the whole structure of family welfare benefits.
Speaking on Europe 1 radio, Migaud said: "Family benefits, family allowances, whether they should be taxed or not, is a subject that can be put on the table. It can be looked at as a benefit which provides income and could be subject to tax."
Along the same lines, he said the government could look at the present tax situation of those three-child families who do not pay tax. Bringing them into the tax regime could bring in 800 million euros.
The families minister said that the Haut Conseil de la Famille advisory body was looking at the family benefits structure and behind that, the efficiency of redistributive policies in family benefits.
Bertinotti said: "Asking ourselves about the efficiency of such policies regarding the middle classes or the less well-off is normal. Let's wait for the Haut Conseil report."
The Haut Conseil de la Famille is due to report next month and reports have suggested that taxing or restricting family benefits could save the government one billion euros next year and 1.5 billion euros every following year.
