Belgium outlines €40 billion plan to cut deficit without raising taxes on low‑income households

A study released on 28 January 2026 proposes a set of fiscal measures that could generate €40.6 billion in savings for Belgium by 2029. The proposals focus on increasing contributions from the wealthiest households and curbing spending deemed economically or environmentally inefficient, while preserving the living standards of the majority.

Key elements include: - Globalising personal income tax to cover financial and rental income, expected to raise €10.3 billion annually; - Introducing a capital‑gains tax on share sales, projected to add €2.9 billion per year; - Implementing a tiered wealth tax on assets above €1 million (1% for €1‑2 million, 2% for €2‑3 million, 3% above €3 million), contributing €8.9 billion.

The study highlights the regressive nature of the current Belgian tax system, noting that the average citizen pays 42% of income in taxes while the top 1 % pays an effective rate of only 24%. The €40.6 billion could be used to reduce the public deficit, meet EU fiscal standards, and finance new policies without imposing additional burdens on low‑income earners.