Emmanuel Macron wants to lower taxes by 2 billion euros

2023-05-15 18:44:00

It takes a lot of good news to be able to turn the page on a difficult period. Taking advantage of the 13 billion in investments announced at the Choose France summit which brought together 200 foreign bosses in Versailles and Paris, Emmanuel Macron wanted to take the positive wave. “We are reindustrialising and attracting, things are moving forward”, said Emmanuel Macron in a deferred interview broadcast Monday, May 15 on the 8 p.m. news on TF1.

Faced with the negative images of the social crisis, triggered by the pension reform which showed violent demonstrations in French cities everywhere abroad, the head of state wanted to minimize recent events. Champion of attractiveness, investment announcements… “there were no strikes in private companies”, thus opposed the Head of State who was speaking from a room decorated with an imposing meeting table at the Elysée.

“We lowered taxes, we lowered labor costs, we simplified the labor code five years ago (…) the figures are there”, defended the head of state for a long time.

But faced with the social revolt and the persistent inflation which permanently penalizes the purchasing power of households, the executive seeks to show flexibility and to save time. “The tax cuts have been concentrated on the middle classes”, first recalled Emmanuel Macron, citing reductions in employee contributions or even the abolition of the audiovisual or housing tax during his previous five-year term.

“When the budgetary trajectory allows it”

Also, the government wants to regain control while anger is brewing and it no longer has a majority in the National Assembly. President Emmanuel Macron has announced that he wants to focus » two billion tax cuts on “middle class” by 2027.

As for knowing what horizons in time these tax cuts will take place, the Head of State admitted: “when the budgetary trajectory allows it in this five-year period”.

In fact, not only is France at the back of the pack compared to its European neighbors in terms of State budget reduction, but, in addition, this debt prevents any reduction in tax revenue (such as the reduction in taxes), without jeopardize the financial reputation of the country, further warns the governor of the Banque de France François Villeroy de Galhau.

“There are two billion tax cuts for households. These two billion, I asked the government to make me proposals so that they focus on these middle classes “, he all the same sketched.

The tracks therefore remain unclear even if Emmanuel Macron has already indicated: “the taxation of middle-class income is too high and is accelerating too quickly. It crushes purchasing power gains between 1,500 and 2,500 euros. I am talking regarding those who are too rich to be helped and not rich enough to live well”he explained in an interview with l’Opinion the day before.

The challenge of growth and full employment

In other words, the government is counting first on its policy of full employment to restore points of growth to the tricolor economy, and thus be able to generate new budgetary room for manoeuvre. “We have created 1.5 million jobs, that’s more than our neighbours,” justified Emmanuel Macron.

The executive must therefore first see the fruits of its policy ripen, also allowing it to temporize the social crisis: “Of 600 factories that have closed since 2017, we have reopened 300”he further maintained.

However, at the same time, activity in French industry is still far from having returned to its pre-pandemic level. And the trade balance continues to plunge.

Finally, Emmanuel Macron wants to open the debate on the sharing of value Beyond salary and bonuses, the Head of State wants to focus on profit-sharing and employee participation in the company.