2024-09-17 23:02:12
Several of the Prime Minister’s interlocutors say that he is not ruling out an increase in taxation on the highest incomes and on companies. Enough to make part of the political class tense.
The hypothesis has been taking shape for a few hours. Two weeks after being appointed to Matignon, Michel Barnier is refining the 2025 budget. While the composition of the government is slow in coming, the Prime Minister, who has not yet delivered his general policy speech to the Assembly, is looking for savings or additional revenue. Among the avenues being explored, a tax increase has been discussed with several interlocutors.
This option was echoed by the resigning Minister of the Interior Gérald Darmanin on Tuesday morning during the meeting of the Ensemble pour la République (EPR) group. And it would be justified, according to reported remarks, by the deterioration of public finances. Enough to make Macronist deputies tense, annoyed at not having more details on this scenario and the economic policy that Michel Barnier intends to pursue.
A few hours later, the leader of the EPR deputies Gabriel Attal drove the point home. By demanding, in a message sent to his troops, a clarification of the “political line” of his successor, both on “possible tax increases” that on “the major governmental balances”. “We do not yet have clear visibility”he said, explaining that he had requested a new meeting with the Prime Minister. “to decide on (their) participation in the government”The two men will finally meet on Wednesday morning.
An increase in corporate tax?
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If the tenant of Matignon “does not prohibit itself”, according to his relatives, “to move towards greater tax justice”as he had suggested in his first television interview on TF1, Michel Barnier has not yet mentioned the outlines of these adjustments. According to a former government advisor, he would consider a surcharge on corporate tax. Others are talking about increased tax pressure on the wealthiest. A way of going against the recommendations of Bruno Le Maire, the resigning Minister of the Economy, who argued for “don’t go back” on taxes in his farewell speech at Bercy.
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The Prime Minister’s entourage has been hammering home that these rumors are “pure speculation”and that“no option has been decided today”they have put part of the political class in turmoil. In particular the right, which, favouring a reduction in spending, has made the increase in taxes a red line. On X, the LR deputy of the Alpes-Maritimes Éric Ciotti has attacked a Michel Barnier who “becomes a worthy heir to Macronism” having “makes France the most taxed country in the OECD”. A hypothesis which would be, according to him, “synonymous with an uncompromising and determined opposition.”
Its new ally since the legislative elections, the National Rally, is blowing hot and cold. “France is the world’s leading tax power, so at some point, this has to stop,” thundered on BFMTV the deputy Julien Odoul, according to whom “Raising taxes is a red line”His colleague Jean-Philippe Tanguy, champion of a social line in line with the aspirations of his voters in the Somme, was more nuanced.
“If it is a measure of fiscal justice, that we tax more the most privileged and the excess profits of certain multinationals in exchange for a reduction in the tax burden on the middle and working classes, then Mr Barnier will have our support.”he argued on BFMTV. Conversely, if the increase is not offset by a decrease in favor of the poorest, the nationalist elected officials “will take the necessary measures according to the announcements made.” Opening the way to censorship of the Barnier government.
In addition to the communist Fabien Roussel, who accuses the executive of “picking the pockets of the French”the left has been more than discreet. It must be said that its mind was elsewhere after the chairman of the Finance Committee Éric Coquerel, flanked by deputy Liot Charles de Courson, did not obtain this Tuesday at Matignon the “ceiling letters”, which set the credits for each ministry within the framework of the 2025 budget. The Insoumis has already promised that he would go and get them on Wednesday at Bercy.
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– What are the potential benefits and drawbacks of increasing taxes on high earners and corporations in France?
France’s Prime Minister Considers Tax Hike on High Earners and Companies
The suspense surrounding France’s economic policy is growing as Prime Minister Michel Barnier is reportedly weighing a tax increase on the country’s highest earners and companies. This development has set off alarm bells among Macronist deputies, who are seeking clarity on the government’s economic strategy.
A Shift towards Greater Tax Justice?
According to multiple sources, Michel Barnier has been exploring avenues to generate additional revenue, including a potential tax hike on high-income individuals and corporations. This move is seen as a means to address the deteriorating public finances, which have been a concern for the French government.
Gérald Darmanin Breaks the News
On Tuesday, former Minister of the Interior Gérald Darmanin dropped a bombshell during a meeting of the Ensemble pour la République (EPR) group, hinting at the possibility of a tax increase. This announcement has sparked anxiety among Macronist deputies, who are seeking more information on the government’s plans.
Gabriel Attal Demands Clarification
Gabriel Attal, leader of the EPR deputies, has called for a clearer understanding of the government’s economic policy, particularly regarding potential tax increases. In a message to his colleagues, Attal requested a meeting with Prime Minister Barnier to discuss the “political line” of the government, including the possibility of tax hikes and major governmental balances.
Corporate Tax on the Chopping Block?
The prospect of a corporate tax increase has also been floated as an option. While Michel Barnier has not ruled out a move towards “greater tax justice,” as he suggested in a recent television interview, the details of such a plan remain unclear. This uncertainty has contributed to the growing unease among Macronist deputies.
Economic Policy in Flux
The uncertainty surrounding France’s economic policy is palpable. As Michel Barnier refines the 2025 budget, the country waits with bated breath for a clearer understanding of the government’s strategy. With Macronist deputies seeking more information and the leader of the EPR deputies demanding clarification, the coming days will be crucial in shaping the country’s economic future.
Implications for the Economy
A tax increase on high-income individuals and companies could have far-reaching implications for France’s economy. While proponents of greater tax justice argue that it would help reduce income inequality, opponents contend that it could stifle economic growth and drive investment away from the country.
A Delicate Balance
As Michel Barnier navigates the complex landscape of French politics, he must strike a delicate balance between addressing public finances and avoiding measures that could harm the economy. The Prime Minister’s ability to find a solution that satisfies both the government’s fiscal needs and the concerns of Macronist deputies will be crucial in determining the country’s economic trajectory.
Conclusion
The possibility of a tax increase on high earners and companies has set off a firestorm in French politics. As the government grapples with the challenges of addressing public finances, Michel Barnier must tread carefully to avoid antagonizing key stakeholders. One thing is certain – the coming days will be crucial in shaping the country’s economic future.
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