CSG increase on 1 January 2005: 97% base for earned income, 6.6% on pensions, 8.2% on capital income, 9.5% on gambling

Article 72 of the Health Insurance Act of 13 August 2004 cuts the professional expenses allowance on earned and replacement income subject to the CSG from 5% to 3% (base raised to 97%). It sets the rates at 7.5% for earned income, 6.6% for retirement and invalidity pensions and early-retirement benefits (instead of 6.2%), 6.2% for unemployment benefits and daily sickness allowances, 8.2% for capital income and investment income (instead of 7.5%), and raises gambling rates by two points (9.5% and 12%). Individuals' real estate capital gains become subject to the CSG. The extra revenue goes to health insurance. Rates on earned, replacement and investment income apply to amounts received from 1 January 2005; for capital income, the 8.2% rate applies from 2004 income, assessed in 2005.