New hiccup at the Palais-Bourbon. The deputies adopted, Wednesday, October 11, against the opinion of the government, an amendment to the 2023 budget aimed at discouraging large companies from distributing exceptional results in “super dividends”. To deter large groups, parliamentarians are proposing to increase a tax temporarily.
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The amendment to the finance bill (PLF) was presented by Jean-Paul Mattei (MoDem), who is part of the presidential majority. Except that this amendment was the subject of an unfavorable opinion from the executive. It was finally widely adopted (227 votes for and 88 against), thanks in particular to the support of the left and that of the RN. He also received the votes of 19 deputies from the Renaissance group, as detailed in the analysis of the ballot. Funny detail: the deputy of the Prime Minister in Calvados, Freddy Sertin, is one of the deputies who freed themselves from the instructions of the government by voting in favor of this amendment.
“I am proud to have voted for this amendment, because it is the essence of who we are at the MoDem: a party that wants value to be well shared in our country, explains MoDem MP Erwan Balanant. We looked at each other with a few deputies, thinking that we were going to vote for it”says for his part the new Renaissance deputy Benoît Bordat, who assumes his place in the left wing of the macronie. “I support the government, but vis-à-vis public opinion, there are also symbols. And we cannot say that our MoDem allies are dangerous leftists.”
During the session, Gabriel Attal nevertheless warned the majority against“effect” of such a device for the attractiveness of the country. “Everyone has to take responsibility”, launched the Minister of Public Accounts. In detail, the adopted text targets large companies, above a certain turnover threshold. He plans “a temporary increase of five points in the single flat-rate levy”bringing it to 35%, on distributed dividends or share buybacks, when this income is “20% higher than the average income distributed between 2017 and 2021”.
It is difficult to give precisely the number of companies that will fall within this legislative framework but, according to the MoDem group in the Assembly, all of the CAC40 companies as well as other major groups should be affected. In total, a hundred companies could be affected, according to the centrist party. “It is important to clarify that the purpose of the tax is not the yield but the disincentive to the payment of ‘super dividends’ [et non pas des dividendes en eux-mêmes] and the incentive to invest more or remunerate employees”details the Modem.
“The amendment contributes to the balance of a society, which makes the country attractive for companies. It is quite simply the social contract”adds Erwan Balanant. “Frankly, the amendment is rather well defined. We are not going to affect small VSEs-SMEs”also believes Renaissance MP Sophie Errante.
“Let’s stop pretending that we are going to discourage all companies from coming to France.”
Sophie Errante, Renaissance MPat franceinfo
“In the period we live in, let’s look for solutions on the sharing of wealth, in particular concerning the rent induced by economic events”, adds the MP for Loire-Atlantique. Concerns about social inequalities and the sharing of wealth increasingly come into mainstream discussions. “We can create wealth in the country, but everyone must be rewarded for the system to be balanced”explains Erwan Balanant.
During the debates, Gabriel Attal recalled that the government already wanted to transpose into the budget an agreement between European countries to tax the superprofits made by certain companies. He therefore asked for the amendment to be withdrawn, considering that the Assembly could “maybe” work on this device “in the coming months”.
The response created some unease in the ranks of the majority. “I have always been loyal. I have good relations with Gabriel Attal, but the government’s response is not satisfactory”, annoys Sophie Errante, who preferred not to take part in the vote. “This way of saying: ‘Move on, we’ll talk about it later’… There is a flaw in the working method. I was disappointed and my lack of vote is also a way of saying stop.” A communication problem within the majority is pointed out by several deputies. “We need more coordination, but it’s complicated when there are more than 3,000 amendments, like for this text”confides the rallied Eric Woerth, absent during the vote.
“Maybe there hasn’t been enough discussion before, it can happen.”
Eric Woerth, LREM MPat franceinfo
“It’s true that we need to talk more and come back internally to this vote last night”adds Renaissance MP Louis Margueritte, who voted against the amendment. “But I remind you that the situation is not necessarily always simple for the majority in the absence of an absolute majority.”
Several observers therefore interpreted the vote on this amendment as a snub for the executive, which suffered a series of setbacks at the start of the examination of the 2023 finance bill. “I refute the idea of a majority that cracks with slingers. We are not at all in a sling approach”however assures Benoît Bordat. “I find the term ‘fracture’ excessive. We have different assessments within the majority, this is proof that the parliamentary debate on this text is working well”, supports a macronist deputy.
“There is no fracture of the majorityabounds Erwan Balanant. But often, these amendments get stuck, not by political will, but because of a technical provision, which comes from a central administration that is sometimes too conservative, with this idea, this dogma, of not creating a new tax. The government, which risks resolving to use article 49.3 to pass the budget, will now have to choose whether or not to keep this amendment from the MoDem.