After the positions taken by François Bayrou and Yaël Braun-Pivet, the executive is considering this avenue in order to increase state revenue. But Emmanuel Macron’s party remains divided on the issue.
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The announcement was expected. Feared, even. INSEE revealed on Tuesday March 26 that France’s public deficit stood at 5.5% of gross domestic product (GDP) in 2023, or 0.6 points more than the government’s forecasts. The bad news, caused by “tax revenues much lower than expected”, according to the Minister of the Economy, Bruno Le Maire, pushes the presidential camp to question itself. How can we correct the situation and try to minimize the deficit this year?
“I’m waiting to see credible proposals”, launched Gabriel Attal, Wednesday evening, on TF1. The majority did not wait for the Prime Minister’s call to start phosphorusting. Questioned on France Bleu on Friday, Yaël Braun-Pivet declared herself in favor of thinking about the taxation of “superprofits”, equated to large profits made by the largest companies due to the state of the market and not their particular investments. By targeting them, the objective of the President of the National Assembly is to increase “exceptional state revenue”.
“I am in favor of looking at when there are superdividends, superprofits, massive share buybacks by companies.”
Yaël Braun-Pivet, president of the National Assemblyon France Bleu
This position of a Renaissance figure is close to that of another pillar of the majority, the MoDem. The elected representatives of the centrist party demand “We have been exploring this path for several budget years already”recalled François Bayrou on RTL, Monday morning.
The president of the MoDem group in the National Assembly, Jean-Paul Mattei, managed to have an amendment to this effect adopted in the fall of 2022. It aimed to tax superdividends exceeding 20% of the average dividend at 35%. paid over the past five years. At the time, 19 Renaissance deputies voted for it. But the government did not include this provision in the final budget for 2023.
“Some are quite convinced”
A year and a half later, the MoDem is still defending this idea. “I prefer to tax superdividends than superprofits”, distinguishes Jean-Paul Mattei from franceinfo. The first are received by the shareholders of a company. The second are made by the company itself, and can therefore be used to remunerate shareholders, but also to make investments in the company, for example.
For François Bayrou’s supporters, it is now a matter of persuading their majority colleagues. “Some are quite convinced. Now, that requires carrying out an explanation and seeing the potential side effects”explains the group leader. “There is still resistance, but it is less firm than usual. They turned the key in the direction of opening”we imagine in the ranks of the MoDem.
What is really going on in the ranks of Renaissance? “Most certainly, this idea is gaining ground, and perhaps even at Horizons [le parti d’Edouard Philippe]“says an MP opposed to these taxes. “There are three blocks”, summarizes a parliamentarian who supports these measures. The first brings together the deputies who support the inflexible line of Bruno Le Maire, critic of these measures. The second group brings together those who “want that to change” and are open to taxation of superprofits. Finally, the third is composed of “those who hesitate”.
“A false good idea”, for the right wing of Renaissance
Parliamentarians resistant to superprofits prefer to highlight the contribution on the inframarginal rent (CRI), an exceptional tax launched in 2023 on the profits of energy companies, which have increased significantly in recent years with the rise in energy prices. Thomas Cazenave, Minister of Public Accounts, announced Wednesday on Public Senate that the government was going to “review the system” of this tax. “It brings in too little compared to what we expected. We expected 3 billion, we only got 600 million. (…) We can hope for 1 billion more in 2024.” “We are open to doing it”declared the Minister of Industry, Roland Lescure, Wednesday, on franceinfo. “When an income falls from the sky, it is normal that we share it with the French.”
“Temptation exists because we live in a moment where we have to make decisions that are not obviousanalyzes the deputy for Saône-et-Loire Louis Margueritte, close to the line of the Minister of the Economy. But it’s typically the wrong idea“, he assures, because this “will be seen as an increase in taxes” And “it never brings back what we planned at the beginning”.
“I see the symbolic aspect of these measures, but we would lose the clarity of our policy.”
Louis Margueritte, Renaissance deputy for Saône-et-Loireat franceinfo
In the end, even if it is progressing, the idea nevertheless seems far from being successful. Can it invite itself into the debates around a draft amending finance law (PLFR) in the summer, due to the very difficult situation of public finances? Or will it be addressed during the traditional finance bill (PLF) for 2025, debated in the fall? “We would do better things in a PLF, with a broader spectrum, but I don’t know what situation we will be in in the fall”tries to anticipate Jean-Paul Mattei.
Before this meeting, a debate on the deficit and public finances will take place in the National Assembly on April 29, after a request from the president of La France insoumise of the finance committee, Eric Coquerel. “We have to take a position, because the debate deserves to be raised”maintains Jean-Paul Mattei.