Support for the government’s proposed tax reform is continuing to unravel, with opposition parties voicing new criticisms and even coalition MPs expressing surprise at the emerging fault lines. The Alternative Democratic Reform Party (ADR) declared its opposition to the single tax class plan immediately after Minister of Finance Gilles Roth presented the proposal; now, The Luxembourg Socialist Workers' Party (LSAP) and The Greens have also voiced concern.
While the LSAP and The Greens support the principle of tax individualisation, they have criticised Gilles Roth's draft as an expensive reform that would cost the state nearly one billion euros per year and largely benefit those in higher income brackets. According to LSAP MP Franz Fayot, the proposed Barème unique (single tax scale) should have been based on Class 1 (singles), with subsequent moderation to account for children or household composition, instead of being modelled on Class 1A.
Fayot described the reform as a "gift before the elections", but also cited new issues raised by the Chamber's scientific advisory unit, echoing concerns previously mentioned by the IDEA Foundation and individual commentators. Among these is the articulation of the reform with the principle of solidarity as set out in civil law, particularly in relation to the legal and fiscal role of marriage.
ADR parliamentary group leader Fred Keup attended the committee meeting but was unavailable for comment afterwards. The ADR has long been clear in its position: it opposes the reform, arguing that the traditional family model – where only one partner works – would lose its fiscal advantages.
Diane Adehm, CSV MP and President of the Finance Committee, highlighted decades of criticism from the National Council of Women (Fraerot), noting that women are disadvantaged by the current splitting system. In couples where one partner earns significantly more, splitting reduces the higher earner’s tax burden. She emphasised a key dilemma: "At some point you have to be consistent – do we want to protect women, since so many lose out under splitting, or do we prioritise the 'solidarity of marriage' and ignore those disadvantages?"
In this context, Greens MP Sam Tanson pointed to the opinion of the Chamber of Employees, which found that the reform would provide the least relief to Class 1A taxpayers – primarily single parents – since the new scale does not fully reflect inflation. In her view, children’s needs remain insufficiently addressed: the 'petite enfance' tax allowance only applies until age three, and as it is a deduction, families with lower incomes – who pay less tax – benefit less.
However, Adehm responded that Class 1A has already seen improvements in recent years, both through adjustments to the scale and through tax credits. She added that further enhancements for families with children – such as the child allowance for children up to three years old and the deductibility of partners’ social contributions – had been included in the reform at the opposition’s request. Democratic Party (DP) MP Corinne Cahen listed additional measures, including an increase in child benefit next year. She argued against placing further tax emphasis on children, warning that this could end up disadvantaging those who earn less and therefore pay less tax.
Her party colleague Patrick Goldschmidt, present during the interview, added: "I have to smile, because I find it interesting that the Socialists and The Greens are unhappy when people receive tax relief." He suggested that the state should focus on reducing current expenditure, rather than withholding relief, and noted that adjustments for higher-income earners could still be made in 2029 or 2030.
The Chamber's scientific advisory unit observed that most EU countries have moved towards individual taxation. However, with the exception of Belgium, the assessment of social benefits in these countries is still usually based on the combined resources of a couple, which can lead to tensions or inconsistencies.
Representatives from The Left (déi Lénk) and The Pirate Party were not present at Tuesday’s committee meeting. The planned tax reform, which introduces a single tax scale ('Barème unique U'), is scheduled to come into force in 2028.
