Family allowance could be taxed


Family allowance could be taxed

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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.