Communist and socialist elected officials are working on the idea of new taxes as part of a reform of Parisian taxation, while the municipality’s debt has reached a historic level under PS mayor Anne Hidalgo.
Financial management to say the least catastrophic. Under Anne Hidalgo’s tenure, the capital’s debt skyrocketed to historic levels. In 2022, revealed Capital last January, it stood at 10.02 billion euros… compared to 3.7 billion in 2013. Suffice to say that on the side of the Town Hall, we are working to identify solutions in order to clean up the accounts, visibly rather by choosing to increase revenues rather than reduce expenses.
To do this, according to Le Figarothe mayor of Paris would consider reforming its taxation, in order to further increase taxes. “The current system of local government taxation is out of breath, and needs to be urgently reformed”declared in particular Nicolas Bonnet-Oulaldj, leader of the elected Communists of the Paris municipal council, and Paul Simondon, PS assistant to the finances of Anne Hidalgo.
First reforms from 2023
At least three avenues have been mentioned: the creation of an additional tax on vacant offices, the multiplication “at least by four” of the tax on vacant housing, and the removal of the ceiling from the housing tax on second homes in tight areas. Real estate is not, however, the only sector that the mayor of Paris hopes to puncture more: the wealthiest tourists could also be put to contribution, via the removal of the ceiling from the tourist tax on palaces and luxury hotels.
Finally, Anne Hidalgo and her family would like to hire a “national reflection in order to better tax the profits of multinationals based in Paris”. The idea of creating another tax on delivery fleets or delivered products was also mentioned.
In the event of political consensus, some of these tax reforms could see the light of day as early as 2023.