2024-09-24 11:45:00
Michel Barnier asked the rich to make an effort. In an interview with France 2 television news on Sunday September 22, the Prime Minister has promised that he will not increase taxes “as in the most moderate, or on those who work, or on the middle classes”. But, faced with a public debt of more than 3,000 billion euros, he recalled the need for a “combined effort” to reduce debt and explained that “this can be done with a few targeted taxes, on the people most vulnerable, on some large companies.
Tenant Matignon has not officially explained the measures he plans. According to information from La Tribune Sunday we had The echoesThe executive will work on limiting the income tax rate. In fact, each year, the income levels defining the tax brackets are increased by the amount of inflation over a year on January 1 of the tax year.
Hold the income tax rate
Freezing the rate would bring taxpayers into a higher tax bracket than they are in in 2024 without their purchasing power having increased. The measure will affect at least the two highest tax brackets, whose flat tax rates are 41 and 45%. But the corresponding bracket to the extent of 30% can also be. In this case, the expected revenues will be around 4 billion euros in 2025.
READ IT AGAIN The budget: what Michel Barnier can do to get into the European spotlightUnder the assumption of the closing of these three brackets, and with an additional rate of 2%, the income tax rate collected in 2024 will be:
0% tax up to 11,520 euros;
11% tax from 11,520 to 28,797 euros;
30% tax from 28,797 to 82,341 euros;
41% tax from 82,341 to 177,106 euros;
45% above 177,106 euros.
This will be a break with the tax policy of the previous governments of the five-year terms pursued by Emmanuel Macron. According to the Court of Auditors, a tax cut of 62 billion euros is planned in the period 2018-2023.
Make the richest money for “flat head”
Another way, often raised, to make a big contribution to the richest: the change of a flat rate tax (PFU), known as “flat tax”. This is a payment on capital income (dividends, certain savings products, real estate sales) of up to 30%, and up to 34% for higher incomes. Before its implementation in 2018, the tax on capital income could rise to 60.5% for the richest.
Such a difference in the rates suggests that it would be wise to increase the PFU rate, or even to return to income tax at the income tax rate – as it was before 2018. In fact, “the rate 30 to 34% are already not very good to the capital” because “France is at the top of the international rankings”, confirms the opinion of Terra nova, near PS, is attention d’analysis published on September 20. Although it is possible to increase the balance, the return will be minimal, of the order of hundreds of millions of euros.
READ IT AGAIN Jacques de Larosière: “To balance the budget, you just need to be fair” The real challenge is to ensure that “everyone pays 34%, including the richest who, until now, are exempt because they do not know any capital gains and cancel capital gains when they pass on assets them,” the think tank wrote. , which suggests several ways to achieve this, for example changing the tax status of free transfers. With these reforms, Terra Nova estimates that it will be able to raise 4 billion euros.
Increase corporate taxes
Michel Barnier also stated that he intends to involve more large companies: “I think that some large companies, multinationals, doing well, can also contribute to the national recovery effort . »
Is the executive considering a tax on superprofits, which left in favor of? The apparent failure of Crime may have left the Prime Minister in awe. This contribution on the inframarginal rents of energy companies, carried out in December 2022, should bring us 12.3 billion euros, but ultimately only generate 300 million in revenue.
READ IT AGAIN Bercy, the worst case of the next government? Véronique Louwagie (DR) vice-president of the Finance Committee in the National Assembly said: “From tax benefits, we still have to explain what they are. This is certainly not an increase in surplus compared to the previous year. The basis of such a tax should retain only part of the surplus which is unique, being careful not to risk reducing the original spirit of businesses. » In short, the amount of expected income will be too uncertain to establish a reliable budget.
Instead, Michel Barnier may be tempted to increase the rate of corporate income tax (IS). This rate decreases from 33.3% in 2017 to 25% in 2022. The Court of Auditors estimates that this leads to a decrease in income of 11 billion euros for 2022.
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