The 2027 budget proposal, announced on October 1st by French Minister Sébastien Lecornu, includes changes to a tax benefit for retirees known as the 10% allowance. This allowance, introduced in 1978, allows retirees to deduct 10% of their income from their taxable amount, up to a limit of 4,439 euros per household. The new proposal would lower this limit to 3,000 euros. This is the third time the government has attempted to reform the allowance, with similar proposals in the 2025 and 2026 budgets failing due to opposition from lawmakers during budget discussions. The 10% allowance for retirees is different from the 10% deduction available to people who are still working. Active workers can deduct up to 14,555 euros from their income, while retirees are capped at 4,439 euros per household. The allowance was designed to help retirees cope with the drop in income when they retire and to account for higher healthcare costs. It also aimed to benefit retirees who could not easily under-declare their income, as their earnings are reported by pension funds. The proposed change would mainly affect retirees with annual incomes above 30,000 euros. For example, a single retiree earning 40,000 euros a year would see their taxable income rise from 36,000 euros to 37,000 euros, increasing their income tax by 300 euros. For couples, the impact would be greater, as the new allowance would be calculated per household rather than added together for each person. A couple with a combined income of 50,000 euros would face a taxable income increase from 45,561 euros to 47,000 euros, resulting in a 158 euro tax increase. According to the government, the reform could generate an additional 1.4 billion euros in tax revenue. This change is part of a broader set of measures in the budget that affect retirees, including plans to adjust the way some retirees' pensions are indexed to inflation.