And if the RSA, the family allowances or housing subsidies increased from 5%...

Insee book this Tuesday with a little exercise of economy-fiction. The national institute of statistics focused on effects in terms of standard of living and so

And if the RSA, the family allowances or housing subsidies increased from 5%...

Insee book this Tuesday with a little exercise of economy-fiction. The national institute of statistics focused on effects in terms of standard of living and social inequalities that may have a variation of 5% for certain social security benefits and direct taxes.

The study shows that an increase of 5 % of the lump sum amount of the RSA (or 27 euros more per month on a total of 539 euros monthly on average in 2017) will reduce the poverty rate by 0.2 point. In fact, it would increase the average standard of living of the people originally beneficiaries of the RSA by 1.2 %. "For the recipients belonging to the 10 % the most modest of the entire population, the rise in the standard of living would rise, on average, 2.8 %", the study notes. This increase in the RSA would also be eligible 135.000 new households to the benefit. The Insee does not forget to recall that such a measure it would still 825 million euro for the public finances (the equivalent of the gain in disposable income for households).

An increase of 5 % of the calculation base of the family allowance (20 euros more per month) would also increase the average standard of living of beneficiaries of family benefits, of 0.3 %. It would decrease the poverty rate by 0.2 point. Insee cited as an example the case of a couple with a low income with two children under the age of 14 years, of which family allowances would increase by 7 euros per month and the allowance of back-to-school 28 euros (for a child 6 to 10 years) . "This increase would not impact on the numbers of beneficiaries, but would increase the total household disposable income of 818 million euros", according to Insee. And would cost as much to the coffers of the State.

An increase of 5 % on the scale of housing assistance would decrease the poverty rate by 0.2 of a percentage point. This increase of 781 million euros the total household disposable income. The standard of living of the people originally beneficiaries of the aid would increase by an average of 0.7 %. "The increase would be strongest in the bottom of the scale of levels of life," says Insee. The result of this increase, 127.000 additional households would benefit from such aid, an increase of 2.2 %.

Finally, an increase of 5% slices of the income tax would increase the total household disposable income of nearly 5 billion euros and would entail a reduction in the tax revenue of the State. "More than a million households initially subject would be exempt," says Insee. The level of living of the households initially subject to the tax on the income would increase by an average of 0.7 %. "Such an increase of the tranches of the IR would increase, however, the poverty threshold of 0.4 % (due to the increase of the median standard of living of 0.4 %) and as a result the poverty rate of the whole there population of 0.2 of a percentage point," the study concluded.

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Date Of Update: 03 April 2019, 00:00
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