Posted Oct 14, 2022 4:55 PMUpdated on Oct 15, 2022 at 10:01 a.m.
Good news for the purchasing power of families. On Friday, during the examination of finance bill in the Assembly, the majority succeeded in having an amendment adopted which raised the ceiling of the tax credit for childcare costs for children under six years of age. Led by Renaissance MP Mathieu Lefèvre, the voted text plans to increase the ceiling from 2,300 euros to 3,500 euros per dependent child. In the event of joint custody, the tax credit will be shared between his parents, specifies the amendment.
Concretely, with this gesture, families will be able to benefit from aid of up to a maximum of 1,750 euros per child. The tax credit represents 50% of the amounts paid for childcare.
Two new tax credits
The measure is likely to be retained by the government in the finance bill, once article 49.3 of the Constitution is triggered to adopt the budget text.
This will probably not be the case for two other tax measures which were adopted once morest the advice of the executive on Friday and which caused a strong reaction.
Correct MaPrimeRenov’
The first was filed by LR and creates a tax credit for global energy renovation. “This amendment by Les Républicains deputies proposes to correct the errors and failures of the my prime renov system, to make it more effective and more relevant”, we can read.
The parliamentarians who defended him judge that “the my premium renovation scheme is currently poorly calibrated and built on too restrictive income criteria. In particular, it forgets landlords and only benefits the middle classes and upper middle classes too little, who therefore renounce major energy renovations”. Another grievance once morest MaPrimeRenov’ (in addition to its cost of more than 2 billion): its targeting restricted to small works. Global renovations are excluded, deplore the LR deputies.
The other voted amendment was initially carried by the elected Renaissance Fabienne Colboc, who then withdrew it, but which was taken up by Boris Vallaud (PS). It aims to transform the tax reduction for mileage expenses incurred in the framework of a voluntary activity by a tax credit. This means that French people who do not pay tax can also benefit from it.
Markets are attentive to the decisions of parliamentarians and finance ministers
Bruno Le Maire Minister of Economy
The Minister of the Economy was annoyed by this sequence in the Assembly and wanted to dot the i’s. “Since we are multiplying tax credits here, I recall the tense financial situation of all the countries of the euro zone (…) with markets that are attentive to the decisions of parliamentarians and finance ministers”, launched Bruno Le Maire.
“Responsible financial framework”
“Any excessive public spending, any spending plan that is not funded, any proposal for an excessively massive tax cut, such as that proposed by the United Kingdom, is paid for in cash, in this case by the resignation of the Chancellor of Exchequer”, he warned, referring to the Minister’s dismissal of Liz Truss , which took place on Friday. Bruno Le Maire urged the deputies to remain “within a responsible financial framework”.
“The opposition voted for two new tax credits worth several billion euros each, is that really reasonable? “, also castigated the general rapporteur of the budget, Jean-René Cazeneuve (Renaissance).
The vote on these two amendments adds to the setbacks suffered since the beginning of the week by the government. Among the hard blows, the increase in the “flat tax” (at 35%) on dividends 20% higher than the average of the last five years, and the restoration of the expatriation tax (“exit tax”) in its version before the Macron reform. In the first case, it is the Modem, however in the majority, which carried the text. The second amendment came from elected LR.
