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Michel Barnier’s general policy speech: what avenues for the budget?
Michel Barnier’s general policy speech: what avenues for the budget?
(Franceinfo)
Tuesday October 1, Michel Barnier will have to deliver his general policy declaration. The Prime Minister is expected on one subject in particular: that of the budget.
How will Michel Barnier replenish the state coffers? The Prime Minister must face a deficit probably greater than 6% of GDP this year and a public debt of more than three thousand billion euros. The government would work on several targeted tax increases. The possibility of a corporate tax surcharge for companies with a turnover of more than 1 billion euros is being considered. A second option considered by the Prime Minister is the taxation of share buybacks. Many companies use part of their profits to buy back their own shares on the stock market and increase their price.
In principle, companies are ready to discuss but only up to a certain point. “We cannot call on companies forever”, indicated the president of MEDEF, Patrick Martin. The automobile eco-tax could also be strengthened. This tax penalizes the purchase of vehicles with high CO2 emissions. The project plans to increase the number of taxed vehicles. Regarding income tax, the government seems to be abandoning the freezing of the scale and taxation of the richest is still under study.