Some “300 companies” will be affected by temporary tax increases, according to Michel Barnier

He wants companies with more than a billion euros in turnover to make a temporary exceptional effort, for one or two years.

Prime Minister Michel Barnier has set himself the objective of reducing France’s debt, while the public deficit risks reaching 6% of GDP this year, far from the 3% set by the European Union. Guest on the show “L’Événement”, on France 2, he once again declared that an effort “exceptional temporary” will be asked “to the largest companies which make more than a billion [d’euros de chiffre d’affaires]”. Some “300 companies” are concerned in total, according to the Prime Minister, who quantified for the first time the number of companies concerned.

THE “time” of this additional contribution “shall be fixed in law”And “it will be a year and maybe two years”he clarified. “But there will be no new taxes on almost all of the 4 million companies.” For these companies, “there will be efforts on the aid that[elles] receive for allowances, social charges which we will try to adjust better so that they are more effective, so that they do not constitute traps on low wages, as is the case today”added Michel Barnier.

A little earlier in the day, Emmanuel Macron had estimated that a “exceptional corporate tax” as announced by the Prime Minister, was “well understood by large companies” but that it had to be “limited”.

Michel Barnier also announced on France 2 that other tax increases, which this time will target the wealthiest people, will allow “to recover two billion euros”. This concerns, for example, a couple with a tax income of 500,000 euros per year. “but not below”according to him.

“The effort that we are going to ask for is based on a tax system on very high incomes which was put in place by François Fillon and Nicolas Sarkozy a few years ago. We are going to add something to this system for exceptional participation and temporary of the most fortunate people”added the head of government.

“In the effort we are going to make to reduce the debt, 60 billion, there will be a two-thirds reduction in public spending. And that will be very hard”concluded the Prime Minister. The latter also mentioned mergers of public services and the non-replacement of all civil servants who retire.