HomeEconomyBudget: Matignon opts for the “Frankenstein” strategy

Budget: Matignon opts for the “Frankenstein” strategy

THE OFF OF LEGENDRE. Discussions on the first part of the finance bill will last until the final vote next Tuesday, even if it means creating a fiscal monster.

Despite the fiscal decontrol currently taking place in the National Assembly, Prime Minister Michel Barnier appears determined to postpone debates on the revenue part of the finance bill until the end of the calendar.

End of debates on Saturday afternoon or Sunday if necessary and formal vote on Tuesday.

The executive’s bet? As in the Finance Committee, the text will not be voted on at the end. This is the “Frankenstein” strategy.

The resulting text of the exam will be so monstrous that no one will agree to pass it. Neither the majority, nor the RN, which is increasingly positioning itself on a pro-business policy.

Therefore, the executive is counting on a rejection on Tuesday, which would allow the original text to be sent to the Senate, where the work should be more serious.

And also

• The indexation of the tax scale costs Bercy 3.7 billion

We better understand why Bercy considered freezing the income tax scale a few weeks ago.

Of course, we would have had to endure the discontent of the hundreds of thousands of households that would have been subject to taxes – I remind you that only 44% of tax households pay income tax – but that would have paid off big time!

While historically the indexation of the sections only costs a few hundred million euros in lost revenue, the increase in prices in recent years has “cost” 6.2 billion in 2023 and another 6.1 billion in 2024. And by 2025, deindexation could have contributed 3.7 billion.

Savings that, in these periods of budgetary scarcity, have made more than one senior official in the Budget Department turn a blind eye. But fortunately it will remain in the taxpayer’s pocket.

Author: Rafael Legendre
Source: BFM TV

Stay Connected
16,985FansLike
2,458FollowersFollow
61,453SubscribersSubscribe
Must Read
Related News

LEAVE A REPLY

Please enter your comment!
Please enter your name here