The “tax justice” measures examined by the Barnier government are beginning to become clearer. The new Prime Minister had announced the color: not to touch the middle classes “who work and produce.” But given an “extremely serious” situation of public spending and a deficit that exceeds 6%, additional income is being studied.
Le Monde was able to examine the projects studied by the government. Some routes were the subject of talks between Matignon and Medef boss Patrick Martin earlier this week.
Surtax on the profits of large companies
A tax on the profits of large companies is on the table. The Prime Minister has not hidden his intention to involve those who can, although his ministers have reminded him that the priority is, above all, to cut public spending.
According to information from the newspaper, the groups subject to this new contribution would pay a surcharge of 8.5%, which would reduce IS taxation to 33.5% of taxable profits. This surcharge would affect groups with a turnover equal to or greater than one billion euros. This idea of overcontribution is not really new, it was already implemented in 2011 by François Fillon in a broader base of companies (those that generate more than 250 million euros of turnover). A measure extended by the Ayrault government and then applied by Emmanuel Macron in 2017. The surcharge planned by the current Barnier government could provide up to 8 billion euros, but should be limited to 2025.
Tax on share repurchases, financial operations in the Government’s sights
Another avenue for tax revenue: a tax on share buybacks. In fact, some groups buy back their own shares in the markets to artificially inflate their price. The shares can then be cancelled, which reduces the company’s share capital, or redistributed to shareholders. These operations that do not create value are periodically criticized and the previous government was already studying this fiscal option. This measure could apply to all operations from the last quarter of 2024, but, like the surcharge, it would only affect companies that generate a turnover of more than one billion.
The income tax scale will not be frozen
On the other hand, for households subject to personal income tax, good news. The scales should follow inflation and be increased by 2%. Leaving the thresholds unchanged would have mechanically increased taxation on households whose incomes would not have kept pace with inflation. And subject to taxation of households that have so far escaped it.
On other roads mentioned by the newspaper, an increase in the CO2 penalty is also expected, reducing the emissions threshold of the affected vehicles. Another planned change: the reinforcement of taxes on furnished properties. Non-professional furniture rental companies (with income less than 23,000 euros or less than the taxable family income subject to IR) benefit from favorable taxation with depreciation of the property not reintegrated into the capital gain in the event of sale.
Source: BFM TV
