The tax increase will hit families who earn “more than 500 thousand euros” a year, announces the Budget Minister

2024-10-03 07:54:26

By Julien Da Sois

Posted 2 hours ago,
Updated 4 minutes ago

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The measure will affect 0.3% of French taxpayers, or around 75,000 families, Laurent Saint-Martin said on Thursday morning.

We know better the profile of the French who will be involved in the 2025 budget. “exceptional contribution” of “The luckiest French”announced on Tuesday by Michel Barnier during his general policy speech, will concern «0.3%» taxpayers, the Minister of Budget and Public Accounts Laurent Saint-Martin specified on France 2 on Thursday morning. That is, families receiving an income of at least “500,000 euros per year”in case they do not have children, the minister indicated on the set of Telematina. Questioned by AFP, his ministry specified that the measure will affect around 75,000 families in France, which according to INSEE numbered 30.6 million in 2021. The income levels affected will depend on the composition of the tax family.

“After years of protecting jobs, incomes and growth, we can legitimately ask this country’s wealthiest taxpayers to exceptionally, temporarily, participate in this recovery effort.”estimated the Minister of the Budget, to whom this contribution must remain “temporary”. And this is to do it “demonstrate that the growth policy, the investment policy, which has borne fruit since 2017, which means that we have reduced unemployment, that we have opened more factories than we have closed, must continue ». However, he did not specify the form this contribution will take. “We will see the mechanism that will be found”declared Laurent Saint-Martin, recalling that this measure had already been adopted “for example after the subprime crisis in 2008-2009”.

A “minimum rate” of income tax for the richest?

In his general policy speech, Prime Minister Michel Barnier specified that this future mechanism will have to enable “to avoid tax exemption strategies for major taxpayers.” A formulation that seems to correspond to the outline of a “minimum rate” income tax for the very rich. Concretely, starting from a certain tax income, the tax could not fall below a certain rate. If a wealthy taxpayer were able, thanks to various tax loopholes, to reduce his income tax below this minimum rate, the administration would demand the difference from him. The text of the 2025 finance law, which will be presented on October 10, will determine the rate and from which income level a taxpayer will be affected by this possible measure.

On the set of Télématin, Laurent Saint-Martin also wanted to reassure the majority of French people. “There will be no across-the-board increase in income tax. There will be no de-indexation of the income tax scale.”hammered. And 0.3% of families affected by the extraordinary contribution, this means that”we do not reach 99.7% of our taxpayers”he underlined.