It is one of main benefits for families referred to in the finance bill (PLF) for 2026. The budget, in article 5, envisages “various eliminations and rationalizations of tax expenditures”including the tax reduction for tuition fees. An advantage granted to parents of children enrolled in middle or high school, as well as to those of children pursuing studies in higher education, in the form of a respective tax reduction of 61 euros (college), 153 euros (high school) and 183 euros (higher education).
But this tax loophole, with a total cost of around 450 million euros per year, is one of those “whose justification or effectiveness are questionable”according to the government. Reason why the executive, in its search for savings, is asking for its elimination. But this is anything but certain, since the members of the Finance Committee adopted, on Monday October 20 evening, several amendments aimed at reversing the end of this tax advantage. Amendments brought by the Socialist and related groups, the RN, the Republican Right or even Liberties, Independents, Overseas and Territories (Liot).
A tax reduction which mainly benefits the wealthiest
Most of the members of the Finance Committee were therefore positioned in favor of removing this tax cut on families, with a favorable opinion from the general budget rapporteur, Philippe Juvin (Republican Right). And this, despite the strong criticisms issued by the Council for Compulsory Deductions (CPO) in a report published on October 14, 2024. The latter then judged that “These tax advantages constitute a good example of ineffective and inefficient expenditure which is not subject to any management in terms of targeting or evaluation.. The CPO pointed out in particular the fact that this tax reduction (and not a tax credit), by definition, only benefits taxable households. Above all, he emphasized at the time that this tax advantage mainly benefits the wealthiest households.
