Should we tax large companies that profit from inflation, fueled by the war in Ukraine, in order to finance purchasing power measures for the French? This is one of the debates that will agitate the ranks of the National Assembly, Friday July 22, during the examination of the highly contested amending budget for 2022. First supported by Nupes and the National Rally, the idea of a tax on the “superprofits” of large groups, such as TotalEnergies, found an echo among part of the presidential majority and among the Republicans. Franceinfo details the positions of the different parties.
The Nupes defends a “25% tax on the superprofits” of certain companies
The taxation of the “superprofits” of large groups is a flagship proposal of the counter-project “aimed at responding to the social emergency” worn by Nupes. The left alliance pleads for the establishment in 2022 and 2023 of a “exceptional tax of 25% on the superprofits of oil and gas companies, shipping companies and highway concessionaires” who “achieve a turnover of more than one billion euros.”
In detail, this tax would concern the French giant TotalEnergies, which generated a net profit of 14 billion euros in 2021, benefiting from the sharp rise in hydrocarbon prices. The Nupes also targets thehe energy group Engie and the shipping company CMA-CGM, which recorded spectacular results in the first quarter of 2022. In total, this tax would generate “just over 10 billion euros” of revenue to finance the measures of purchasing power, estimates the text presented by the deputies of the left alliance.
Several amendments have been tabled by socialist deputies, environmentalists and elected representatives of La France insoumise, in order to integrate this measure into the 2022 amending finance bill (PLFR). On the first day of the debates on purchasing power, Sandrine Rousseau, for her part, launched an appeal “to take money from crisis profiteers” but also to “climaticide companies”, quoting TotalEnergies or Amazon.
“We must take money from climate-killing companies, crisis profiteers and the richest”, assures @sandrousseau.
“In a word: tax the rich. Bernie, if you can hear us…”#PJLPurchasing power #DirectAN @BernieSanders pic.twitter.com/K2TjB9pqBn
—LCP (@LCP) July 18, 2022
At the RN, Marine Le Pen wants to tax “war profiteers”
The National Rally also defends this position. “The war in Ukraine has allowed a number of companies to make superprofits”, denounced Marine Le Pen on June 29 on franceinfo. These benefits “must be taxed in order to be able to finance measures to support the purchasing power of the French”, she said. The member took the example of Hungary, which “recovers two-thirds of the exceptional profit made by a company in wartime”.
Ukraine ➡️ “It is obvious that the war has allowed a number of companies to make super profits. They must be exceptionally taxed. This is what happened in Hungary”, underlines the president of the RN group which will propose it to the Assembly. pic.twitter.com/7a8sQmtFjd
— franceinfo (@franceinfo) June 29, 2022
In the hemicycle, Marine Le Pen questioned the ministers on the subject on Monday, asking them why they refused to “taxing the superprofits of crisis and then war profiteers.” MPs from the RN group also tabled an amendment to tax companies that have benefited from the post-pandemic economic recovery. “The recovery plans put in place to combat the consequences of Covid and then the inflationary surge which followed the deconfinement excessively favored certain companies”believe the signatories.
Republicans plan to target oil tankers
Even Republicans seem to be sold on the idea. Their leader in the Assembly, Olivier Marleix, affirmed, Tuesday, July 19, to have “no hostility” make greater use of oil companies to bring down prices at the pump, including by taxing their “superprofits”. “We see today that Total – it’s not a crime on their part, it’s a simple observation – benefits (…) from the rise in prices” petrol. Nevertheless, tax only the French oil giant risks generating little revenue: TotalEnergies makes most of its profits abroad.
Tax superprofits? ➡️ “No tax on superprofits in general”, says Olivier Marleix. But “it would not be shocking to ask for an exceptional contribution” from oil companies like “Total”, still believes the president of the LR group. pic.twitter.com/K8vV5rdYcN
— franceinfo (@franceinfo) July 20, 2022
Olivier Marleix has also closed the door to a “tax general” on all the companies that have generated “superprofits”. “All the companies have rather good balance sheets in 2021, because there has been a catch-up effect and therefore we should not draw too general a consequence”, he pleaded on franceinfo.
The majority divided, the government tempers
Within the majority, the question is far from achieving consensus. Twelve Renaissance deputies tabled an amendment to the PLFR in 2022 to introduce “an exceptional contribution to the profits of oil and gas companies, shipping companies liable for corporation tax” who “achieve a turnover of more than one billion euros”. The text, tabled by MP Stella Dupont and signed in particular by former ministers Barbara Pompili and Stéphane Travert, aims for taxation at “15% of the taxable result”.
A text that is not to the taste of the president of the majority group. “It is better to pay less immediately”in particular by “lower prices at the pump” that “to hope for the proceeds of a tax in one or two years”, argued Aurore Bergé on France Inter.
Taxing the superprofits of companies that are making big profits thanks to the crisis, as proposed by the opposition and members of the majority? “It is better to pay less immediately” than “to hope for the proceeds of a tax in one or two years”, explains @auroreberge pic.twitter.com/ZjeKVA42XZ
– France Inter (@franceinter) July 20, 2022
Within the government, we also prefer “calling for corporate responsibility” rather than creating a new tax. During his July 14 interview, Emmanuel Macron mentioned “a contribution” of companies that have made significant profits in recent months. “But she will not be in demagoguery”he said.
For the time being, the executive therefore prefers to encourage companies to take action directly with consumers. “Total did it on the price of fuel”, had defended Bruno Le Maire at the end of June at the end of June. The group had announced a discount of 12 cents per liter in its stations on the motorway until August 31, in addition to the rebate of 18 cents from the State. The Minister of the Economy had then requested that the tanker “continue its effort, even increase it”. “We will do the accounts at the end of the year, we will see who played the game”assures Bercy to franceinfo.
Faced with this pressure, TotalEnergies promised Friday a new discount at the pump of 20 cents per liter between September and November in all its service stations, then 10 cents per liter for the rest of the year. In the process, the shipowner CMA-CGM announced a further reduction in its prices “to support the purchasing power of French households and the economy”, after a first gesture announced at the end of June. The maritime transport giant will reduce its freight rates by 750 euros per 40-foot container to France and the Overseas Territories, i.e. up to 25% of its prices, instead of the 500 euros initially planned.