The effects of a change in the amount of some taxes and benefits on living standards and inequalities

Various hypothetical changes in the amount of some taxes and social benefits are simulated over the year 2018 in order to evaluate the effects on living standards of households and on inequalities, which are measured by several indicators such as the poverty rate, the interdecile ratio and the Gini coefficient.

As a result, a 5% rise in the amount of the Revenu de solidarité active (RSA) would lower the poverty rate by 0.1 point and the intensity of poverty by 0.7 point. A 5% increase in the monthly family allowance base (Bmaf) would increase the average standard of living of the beneficiaries by 0.2%. A 5% rise in the housing allowances scale would decrease the poverty rate by 0.3 point. Finally, a 5% increase of the income tax rate brackets would exempt more than a million households from it but would not have any effect on the poorest households. It would slightly increase inequalities, with the interdecile ratio rising by 0.02 (+0.7%)