tax cuts for companies at the center of the debate

by time news

Despite the almost certain track of an appeal to 49.3, the executive is preparing to scrap in the Hemicycle around the finance bill for 2023. The text, examined in the finance committee from Tuesday, October 4, then in session in the National Assembly from Monday 10, is already the subject of friction between the majority and the opposition.

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It must be said that the context is far from favorable: the government no longer has an absolute majority in the Palais-Bourbon, and, if the opposition parties have clearly warned that they will not vote on the budget, the executive wishes to avoid to be outvoted on the most emblematic measures. Negotiations were conducted with the figures of the majority and the opposition upstream, but the latter did not allow everything to be cleared.

A week before the start of the debate in the Hemicycle, more than 1,500 amendments had already been tabled by the deputies in committee, auguring lively and possibly eruptive discussions. One of the subjects crystallizing the dissatisfaction of the oppositions is the abolition of a tax weighing on companies, the contribution on the added value of companies (CVAE), which brings in 8 billion euros per year to local authorities. Promise of the candidate Macron during the campaign, the disappearance of this tax, considered harmful for the competitiveness of the country, was to be acted in one go from 2023. But the tense situation of public finances forced the government to spread its abolition over two years, in order to respect the recovery trajectory of the public accounts transmitted to Brussels.

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Irritated local communities

Even under these conditions, the measure irritates local authorities, whose executive fears that the right will speak out during future debates, in the Assembly but also in the Senate in view of the senatorial elections of September 2023 The abolition of this tax is, in fact, amputating the communities of part of their tax revenues, and, despite the promises of compensation to the nearest euro by Bercy, the latter fear in the long term to be losers. A subject that is all the more sensitive as they see their expenses increase under the effect of inflation. “The abolition of the CVAE is likely to break the link between the economic world and the territoriesadmits the vice-president of the finance committee, Véronique Louwagie, elected Les Républicains (LR), who nevertheless says she is in favor of its abolition. In the same way that the abolition of the housing tax has cut this link between households and communities. We need a mechanism that really protects communities. »

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