2023-05-16 12:29:56
Baptiste Morin and Romain Bitot, edited by Corentin Alloune / Photo credit: Magali Cohen / Hans Lucas / Hans Lucas via AFP
modified to
16h00, the 16th of 2023
Tax cuts, yes, but for when and for whom exactly? Many questions remain the day following Emmanuel Macron’s announcement on TF1 concerning the taxation of the middle classes. The President of the Republic has asked the government to make proposals to concentrate 2 billion euros in tax cuts on the categories of French people who are not rich enough to live well and too poor to be helped.
“I think it’s not enough”
What do the people who are part of these middle classes think? In the streets of the capital, passers-by remain perplexed. “When it comes out of Macron’s mouth, it’s going to be a 20-ball thing. It’s useless. In fact, it’s useless for him to lower taxes if he increases something else on the side,” explains a passing.
Another adds: “I find that it is not enough. We should lower people’s charges. I, who am an independent trader, find that I pay far too many charges.” Others see this measure as good news: “I think it would be a good solution because I have children who are studying, so it will help. More purchasing power means maybe more leisure.”
10 and 12 million households affected
The measurement is still quite vague. First, there is no specific timetable for the entry into force of these tax cuts. Emmanuel Macron only promises that they will intervene when the budgetary trajectory allows it, before 2027.
What is certain is that the total amount of this reduction is estimated at 2 billion euros. And what we also know is that this should benefit the middle classes. Emmanuel Macron clarified this in his interview with L’Opinion, published on Monday. These would be French people who earn between 1,500 and 2,500 euros per month, which would therefore concern between 10 and 12 million households.
But how will this reduction apply? By a reduction in charges, less social security contributions, therefore more net wages. Emmanuel Macron has already used this lever, in 2018. The key, from 20 to 75 euros more per month for private sector employees. Except that hardly anyone remembers it.
Two billion euros by 2027
For good reason, the executive had the bad idea to make a tax gesture in two stages, which had diluted the effect of this drop and this increase in purchasing power this time. It will therefore be necessary to operate more frankly. Especially since this drop is actually nothing earth-shattering. The president promises 2 billion euros by 2027 while the decrease in expenses in 2018 amounted to 7 billion euros in just one year. This tax cut might therefore make “pschitt”, as the former President of the Republic, Jacques Chirac, said.
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