The debate focussed on two main demands: A more just taxation of capital compared to labour, and an extension of the transition period to switch from tax bracket 2 to tax bracket 1a for single parents from the current three to five years.
MP Paul Galles from the Christian Social People's Party (CSV) spoke about the high number of people affected by poverty in Luxembourg and declared that "something is not right".
The "Social Panorama", a document published by the Chamber of Employees, recently confirmed this worrying trend. Galles stated that the coronavirus is "not an excuse" for the inequalities in the Grand Duchy, instead stressing that the problem is "systemic". This is why, in the eyes of the MP, the government's emergency measures will not fix the problem itself. While the government may have extended the "Winter Campaign" – which helps homeless people find a place to sleep during the colder seasons – and family leave, as well as introduced aids to safe the economy, "the fundamental problem remains", according to Galles.
In 2019, the poverty risk was 17.5% in Luxembourg. Minister of Finance Pierre Gramegna stated during the presentation of the Stability and Growth Programme at the end of April that were it not for social transfers and pensions, Luxembourg would have a poverty risk of 46%. This figure is "frightening", according to Galles. The MP and former Caritas worker also criticised that the effectiveness of social transfers is continually decreasing. Galles pointed out that this had been proven by the National Institute of Statistics and Economic Studies (STATEC). Considering that Luxembourg's pension system is also "not the most sustainable", one can easily start to dread what the future might look like, Galles stressed.
Those most at a disadvantage regarding their purchasing power are families with multiple children, single parents, but also young people, foreigners, and people with fewer qualifications, Galles explained. The MP also pointed out the "shockingly high" rate of 12.1% "working poor", i.e. people who face poverty despite having a job.
The wage gap between men and women is just "fuel on the fire", Galles added. The poverty risk is shifting towards the centre of society and many people are forced to deal with frustratingly unstable living situations, the CSV MP assessed.
MPs from the Luxembourg Socialist Workers' Party (LSAP) and the Alternative Democratic Reform Party (adr) stated that it is "sad" that people with children in particular are being "punished" by the system.
Minister for Family Affairs Corinne Cahen reacted in a sense immediately to the criticism by announcing that inflation will also be taken under consideration for the calculation of child support in the future. This means that as of 1 January 2022, child support will be indexed once again. In 2006, child and family support were removed from the indexation process.
