A fair tax policy

Our current tax system is unfair, and it systematically discriminates against different categories of people. Also, salaries are generally more heavily taxed than other types of revenue. I campaign for a fairer tax system that has transparent rules and in which those who have more support those who have less.

One tax class for everyone, regardless of marital status

A simple and fair tax law guarantees everyone a chance in our society. That's why we demand full individual taxation in a single tax class for everyone.

It is unacceptable that our tax system continues to reward one way of life and punish another.

› The aim is full individual taxation, where everyone is treated equally, regardless of their relationship status.

In the short term, for us this means:

• Placing single parents in tax class 2. These people are currently among the most vulnerable in this country, with a 40% risk of poverty.
• Abolish the "widow's tax" and allow the people concerned not to fall back into tax class 1a, but to remain in tax class 2.

To finance this, we recommend increasing the current maximum tax rate from 42% to 47%. This increase should be achieved by introducing additional tax brackets of up to €600,000 per person per year. According to calculations by the tax authorities, this measure could bring in over €300 million in additional revenue for the State, which should be used for tax reform.

Ultimately, we want to see a complete individualization by introducing a negative income tax. Negative income tax means that you don't start paying tax until you have a higher income. Anyone below that gets money from the state, anyone above that starts paying.

Annual indexation of the tax bracket

Each index tranche comes with a tax increase and as a result the purchasing power of the people decreases.

› We Pirates will therefore advocate for an annual indexation of the tax bracket.

With each index tranche your gross salary increases by 2.5%. However, your net will not increase 2.5%, because with a higher gross salary you also have to pay more taxes. Each index costs a minimum wage earner around €10 per month of his purchasing power and the state collects more money through this hidden tax.

In order to change the situation, the tax table must be indexed with a cap on the highest bracket.

The current system of income tax is insurmountable, ineffective and unfair. The Pirates want a simplification of the tax law - this would mean that we would free up a lot of resources in the tax administration and be able to build a transparent system that people can understand and calculate themselves.

More information on https://piraten.lu.