Posted Sep 5, 2022, 7:21 PMUpdated on Sep 5, 2022 at 7:36 PM
This is definitely the most sensitive economic issue of the start of the school year. Even though Emmanuel Macron announced on Monday France’s support for the creation of a “European contribution mechanism” for energy operators with “undue profits”, parliamentarians were precisely in the process of re-opening the question of the taxation of the superprofits made by certain companies since the outbreak of the war in Ukraine.
A fact-finding mission led by Manuel Bompard (LFI) and David Amiel (Renaissance), bringing together deputies from the majority and the opposition, held a first meeting on Monday and hearings will begin next week. Objective: to complete the work just before the examination of the finance bill for 2023, in October.
“I don’t see how the government can continue to oppose it, while more and more countries are adopting this tax,” says Eric Coquerel, chairman of the finance committee. The LFI deputy – who intends to participate in the “Bercy dialogues” launched by the Budget Minister, Gabriel Attal, to clear up the issues before discussions on the finance bill – is certain “that a majority of deputies are in favor of measure”, including therefore within the majority.
Extraordinary profits
The Head of State’s announcements risk spicing up and complicating the debate a little more. The European solution pushed by Emmanuel Macron specifically targets “energy operators whose production costs are much lower than the selling prices on the market”. Clearly, all electricity producers (except those using gas plants), which is far from covering all the targets targeted by the opposition on the left.
Thus the socialist deputy Boris Vallaud, questioned on France 2 this Monday, said to target the multinationals which “achieve more than a billion in turnover”. For him, a definition of “superprofits” could consist of comparing the profits they generate this year with “the average of their results and turnover before Covid” and identifying what is an annuity or a ‘an investment.
Hypothesis of a surcharge
Mathieu Plane, economist at the OFCE, agrees. “What matters is to distinguish the benefits that explode without there being any particular innovation; for example those of CMA CGM have become the most important of French companies, due to the global environment”, he continues. The economist also believes that it will be difficult, for budgetary reasons, to avoid a surcharge and recalls that this has already been done. In 1995, the government of Alain Juppé introduced a corporate tax surcharge of 10% but which affected all companies without distinction.
Questioned during a meeting with the Association of the economic press (Ajef), the first president of the Court of Auditors, Pierre Moscovici meanwhile judged “that it is not a question of a taboo debate, c is a possible option”. “There is a European climate, a number of neighboring countries have done this, including the British Conservatives. But the real question is who to tax and how? And there it is complicated, ”explained the former minister of François Hollande.
Divided majority
It now remains to be seen whether the majority will find in Emmanuel Macron’s statement a way out of a debate that divides it. Some of the Renaissance deputies have thus shown their interest in exceptional taxation. “I observe that companies […] have seen their profits increase exceptionally without investment or major risk-taking, by the sole effect of the economic situation”, thus pointed out the President of the Assembly, Yaël Braun-Pivet, Monday on France Inter, who wants “more equity and social justice in the country.
As soon as Emmanuel Macron’s announcement on the “compulsory contribution” of energy companies was unveiled, one of the strongest supporters of exceptional taxation within the majority, the deputy Sacha Houlié, also made a triumphant tweet: ” A European contribution (tax) from energy companies who make exceptional profits (profits)? I say yes,” he wrote.
However at Bercy, it is estimated that the announcements of the Head of State do not change the government’s position. “The contribution of energy companies, we already practice it in France and it will bring in 8 billion for renewable energies alone. Above all, the President of the Republic did not speak of a tax, ”assures a close friend of Bruno Le Maire. The Minister of the Economy repeated his opposition to any form of taxation or compulsory contribution – he is promoting an alternative solution, that of the financing of a “green fund” by the groups on a voluntary basis.