Luxembourg: Survey suggests tax burden too high on individuals

More than half of the population believes that earners in Luxembourg pay too much in income tax, a survey has revealed, reports the Luxemburger Wort.

The Politmonitor survey commissioned by the Luxemburger Wort found that 65 per cent of Luxembourg earners and 44 per cent of foreign residents working in the Grand Duchy felt the tax burden on individuals was too high.

With the two groups combined, just over half of the respondents (56 per cent) said the burden was too high.

The question clearly divided respondents, as 44 per cent of foreign respondents said that the tax burden on individuals was fair, compared with a quarter of Luxembourgers (26 per cent).

The upper tax band for high earners in Luxembourg is currently set at 43.6 per cent, applied to earnings above 110,000 euros brut, per year.

Over a quarter of all respondents said this threshold should be lowered to 100,000 euros per year, compared with a third of Luxembourgers.

A fifth of respondents agreed that the upper tax rate of 43.6 per cent was about right, compared with a quarter who said it should be less than 40 per cent, and another quarter who said the rate should be set at 40 per cent.

Around half of all those polled said that the spread of the tax burden between companies and individuals was unfair.

Luxembourgish respondents were the most likely to have this opinion, with 57 per cent saying it is unfair, compared with 40 per cent of foreign respondents.

Around a quarter of all respondents said that the tax burden should be split 50-50 between companies and individuals.