the race to abolish taxes worries local communities

by time news

In the letter he sent on March 26 to the mayors, the candidate Emmanuel Macron confirms his intention, if he is re-elected, to completely abolish the contribution on the added value of companies (CVAE). The proceeds of this tax – a little over 9 billion euros, taking into account the reductions already paid for by the State – are distributed 53% in favor of the municipal block (municipalities and intermunicipalities) and 47% for the departments. In his letter, Mr. Macron assures us that “the abolition of the CVAE will be compensated to the nearest euro”.

The candidate also indicates that “reciprocal commitments will be established, on a concerted basis, to contribute to the essential control of public expenditure”. A proposal that sounds to the ears of local elected officials like a hidden return to the “Cahors contracts”, this contractual arrangement with the main local authorities set up in 2018 by the government, by which it intended to achieve 13 billion euros over five years. euros in savings on operating expenses and which he had to give up in 2020 because of the health crisis.

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If the candidate president has not advanced any amount with regard to the “control of public spending”, his representative during the hearing of the presidential candidates organized on Tuesday March 22 by Urban France and Intermunicipalities of France, the budget rapporteur for the National Assembly, Laurent Saint-Martin, meanwhile indicated that the savings envisaged would be of 10 billion euros. With these two concomitant announcements, without forgetting Mr. Macron’s desire to resuscitate the territorial councilor, the subject of local finances – and, more broadly, of state-community relations – was once again invited into the presidential debate.

At least at the level of local elected officials, among whom they raise serious concerns. In a letter to mayors dated 1is April, the first deputy vice-president of the Association of Mayors of France (AMF), André Laignel, a tireless critic of the Head of State, castigates his “willingness to continue to put communities under guardianship”thus breaking with the traditional neutrality during the presidential period of the association representing all the mayors.

“The mode of compensation is not decided”

It has been a long time since production taxes have been in the crosshairs of employers, who believe that they penalize growth, employment and wages. Candidate Macron is not the only one who wants to tackle it. Marine Le Pen plans, if she is elected, to abolish the corporate land contribution (CFE), collected by the municipal bloc alone, for an amount of around 8.5 billion euros, and to abolish part of social solidarity contribution from companies (C3S) – not quantified – in the “areas to be reindustrialized”. Valérie Pécresse proposes to abolish the CVAE for VSEs-SMEs up to 50 million euros in turnover and the C3S (3.9 billion euros, which contribute to the financing of old-age insurance), as well than the social package paid by employers on remuneration and bonuses not subject to social security contributions. As for Eric Zemmour, he plans to “reduce production taxes by an additional 30 billion euros”which almost eliminates them.

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