When people on low and middle incomes spend less, company sales and profits fall, which lowers corporate tax revenue. Wider effects on jobs and growth will be added later with multiplier effects.
Of every 100 euros that a change to “Income taxes of low and middle incomes” saves or brings in, 3 € is lost as revenue on the line “Corporate income tax” every year. (The other way round if the change adds spending or cuts taxes.)
E(t) = s × T(t)
Rough estimate: consumption drop €0.80 × business profit margin about 20% × corporate tax 18–20% ≈ 3%.
How the effect builds up over time
Share of the change's own effect on the balance, year by year while the change continues: −15% means 15% of a saving comes back as cost (or 15% of extra revenue is lost). With the default values.
You can switch the effect on or off and adjust its assumptions in the simulator under Cause-and-effect chains.