Senators voted on Tuesday, in the 2025 budget, in favor of the “differential contribution” on high incomes proposed by the government, but also adopted a series of measures against the executive’s advice to increase several capital taxes, such as the “single tax” and the “exit tax”.
The afternoon started quite well for the Budget Minister, Laurent Saint-Martin, who saw the Senate validate almost without modifications the high income tax, which should provide 2 billion euros per year until 2027.
Unlike the deputies, who had decided to make this new tax on the richest permanent, the upper house of Parliament adopted the initial version of the executive that limits its scope to three years, “until the taxation of income for the year 2026,” for which payment will therefore be made in 2027.
The minister, however, declared himself “open” to “maintaining” this tax “as long as the country’s public deficit does not return to 4%”, as he had already suggested two weeks ago in the National Assembly.
On the other hand, he has considered that “it is not necessary to modify” the content of this “tax justice measure” that establishes a minimum rate of 20% for incomes exceeding 250,000 euros per year for a single person and 500,000 euros for a couple. childless.
On the contrary, the attempts of the left, a minority in the upper house, to extend this “contribution” to the higher classes have been in vain. “We know very well that these assets largely escape taxes,” lamented socialist Florence Blatrix-Contat.
Totems with dog ears
In the process, however, the minister suffered a series of setbacks. Firstly, on the “exit tax”, a mechanism for capital gains created during the government of Nicolas Sarkozy to discourage tax exile, but emptied of substance by Emmanuel Macron, who reduced the term from 15 to 2 years.
Duration that the senators decided to double to 4 years when the benefits come from a company that has received at least 100,000 euros in public aid. “The time has come to correct the French tax evasion system, especially for large companies,” explained centrist Bernard Delcros, whose group tipped the balance by joining the left to approve this amendment by 173 votes to 167.
Same configuration a little later in another emblematic reform of the Head of State: the “single tax”, also called “single flat rate rate” (PFU) and which limits the flight of capital income to 30% since 2018, as the dividends. or life insurance. The rate increased to 33%, by 174 votes from the left and the center against 167 from the right and the Macronists. With an expected profit of 800 million euros according to the radical group RDSE, which approved the amendment.
Third damaged totem: the real estate wealth tax (IFI), also established seven years ago to replace the old solidarity wealth tax (ISF). If the left has once again failed to restore the ISF, a broad consensus has emerged across all banks to rename the IFI the “unproductive wealth tax”, with a considerably expanded scope: building land, cars, yachts and airplanes, but also cryptocurrencies. savings accounts and bank accounts.
Source: BFM TV
