the question of tax increases is debated within the majority

Despite the very degraded budgetary situation, the government insists that it rules out any tax increase. However, within the majority, the debate begins.

After the announcement of the public deficit which reached 5.5% of gross domestic product (GDP) for the year 2023, much more than the 4.9% planned, since it represents 15 billion euros of difference, the government is looking for money, billions of euros. And it was Yaël Braun-Pivet, the president of the National Assembly who was the first, at the end of March, evoking superprofits, superdividends, to raise the possibility of increasing taxes. For this early Macronist, there should be no taboo: for exceptional expenses, why not an exceptional, temporary contribution to the wealthiest.

But, for Emmanuel Macron and the government, raising taxes is out of the question, it is better to cut spending. For Emmanuel Macron, raising taxes would be a renunciation. Since he arrived at the Élysée, he has abolished the housing tax, the royalty, but above all the ISF, the wealth tax, which he however replaced by the IFI, which targets the real estate. If we are to believe Bruno Le Maire, the Minister of the Economy, going through tax increases would be “A facility”. Bercy especially reminds that 10% of French people alone pay 70% of income tax. It is therefore very concentrated and if we take all the other taxes (CSG, etc.), France has the highest rate of compulsory levies. And for the very very rich, there is already an exceptional contribution on high incomes.

Employers fear that companies will be targeted

On the business side, Emmanuel Macron lowered corporate tax from 33 to 25%, but it remains still higher in France than the European Union average, where it is 21%. But given the record profits garnered by CAC 40 companies in 2023 (more than 160 billion euros) and the superdividends they paid to their shareholders, the question of asking them to participate in the effort arises.

Moreover, this is the fear of employers, that companies are targets. Medef, like CPME, for example, are afraid that the government will not keep its promise to eliminate production taxes that weigh on businesses by the end of the five-year term. The other fear of employers is that the government will withdraw aid from companies, such as exemptions from contributions on salaries, tax loopholes, such as the research tax credit, etc. The debate is only just beginning.