Taxes: Macron promises a gesture of 2 billion euros for the middle classes

by time news

2023-05-15 21:42:26

How to renew the link with middle-class workers, the most angry against the pension reform? Despite the budgetary difficulties, Emmanuel Macron has resolved to bring out the checkbook: a purchasing power measure is thus in preparation for an amount close to 2 billion euros, which could play on the mechanisms for alleviating charges on low wages.

Asked this Monday evening on TF1, the Head of State reiterated his desire to give a new boost to the middle classes, “that is to say the French men and women who work hard, who want to raise their children and who today, because the cost of living has gone up, because the wage dynamic is not always there, are having trouble making it through the end of the month”. And to add: “We have to help them by concentrating […] 2 billion tax cuts on these French women and men. »

Uncertain terms

If he mentions “tax cuts”, Emmanuel Macron actually remains quite evasive on the terms of this gesture because “there are several elements that make it possible to reach the middle classes”. Clearly, this would not necessarily go through a reduction in income tax (IR), as in 2019 after the crisis of “yellow vests”.

“I don’t want to close doors here because there may be smart things to do on part of the charges you pay, the contributions you pay when you are employed,” he said, explaining that he had “asked the government to work on it”.

For six years, several tax measures have already been taken to treat these famous “middle classes”. In addition to the reduction of 4 billion euros in 2019 in income tax, we can thus cite the abolition of the housing tax, the reduction in social security contributions in 2018 or the recent end of the fee. Many costly measures, for in the end very little gratitude: a recent Elabe poll for “Les Echos” showed that only 28% of those questioned considered that their taxes had fallen since 2017.

Undoubtedly scalded, the government is considering acting differently this time. According to our information, he would like above all to remove all the economic barriers which discourage the mobility of employees for those who earn salaries close to 1.5 SMIC, and up to 2.5 SMIC: in certain cases, the increase in wages which lands in the pocket of the worker is very small if we take into account the reduction in the activity bonus which results from it, and in other cases it is the increase in the cost of labor due to the degressiveness of the reductions of social contributions which hinders mobility. “It is dramatic for the state of mind of the employees”, underlines a heavy weight of the government. The executive would therefore like to smooth out the effects of thresholds linked to the activity bonus or the mechanisms for lowering charges.

No action on inheritance

This new gesture for the middle classes should cause a retching among all those – in particular Pierre Moscovici, the first president of the Court of Auditors – who call for an end to tax cuts at a time when the coffers are empty. . However, Emmanuel Macron swears to have the means of his policy. “In our budgetary trajectory until 2027, there are 2 billion tax cuts for households. These 2 billion, I asked the government to make me proposals, so that they focus on these middle classes, ”assured the head of state.

This refers to the Stability Programme, recently sent to Brussels, and Bercy confirmed that a small envelope had been provided for in this document. The tenant of the Elysée, on the other hand, was more evasive on the calendar, “when the budgetary trajectory allows it in this five-year term, in this term of office”.

This announcement should in any case lead to the definitive burial of the promise to lower inheritance taxes that Emmanuel Macron had made during his campaign in 2022. This already seemed to be compromised given the very tense budgetary context with the rise financing rates. “This gesture for the middle classes will be done instead of the measure on inheritance rights”, confirms the heavyweight government.

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