The socialists maintain pressure on the government. The head of the PS, Olivier Faure, on Sunday raised the specter of a new censure that would lead to a probable dissolution, if the government does not give in in the coming days with a tax on great wealth.
After having achieved the suspension of the pension reform, the PS intends to take advantage of its advantage by concentrating its demands this time on another object: the Zucman tax, which is at the center of the debates on the “income” part of the budget in the Assembly, scheduled until November 4. This tax, named after its inventor, the economist Gabriel Zucman, provides for a minimum tax of 2% on assets exceeding 100 million euros. However, it was rejected last week in the Finance Committee. Which means that its chances of adoption in public session are slim.
The Socialist Party knows this very well and has already prepared a plan B: “If by chance in the hemicycle we cannot move forward” with this version, “we will look for alternative amendments”, announced Olivier Faure, who proposes an alternative aimed rather at establishing a reduced Zucman tax. In this case, it would be a minimum tax of 3% on high assets, from 10 million euros. However, innovative companies (up to 1,000 employees, a turnover of up to 750 million euros and a total balance sheet of up to 150 million euros) and family businesses (members of the tax household own more than 51% of the voting rights) would be excluded from the base.
A return of 5 to 7 billion euros
This “light” version of the Zucman tax would contribute, according to the socialists, between 5,000 and 7,000 million euros to the State coffers, a figure much lower than the initial version, whose income is estimated between 15,000 and 25,000 million euros.
Invited this Monday by France 2, Gabriel Zucman considered the tax proposed by the socialists insufficient. If it affected many more taxpayers, exempting start-ups and family businesses would not be relevant for the economist, who believes that no professional property should be able to escape the tax: “When we introduce exemptions, we assume the risk of starting the tax optimization machine,” he said.
“This is the great lesson of the ISF. In 1981, the Socialist Party created the tax on large fortunes, the predecessor of the ISF, but incorrectly named professional assets immediately emerged, that is, large shareholdings. The risk is that very rich people, well advised, run the risk of finding loopholes,” he added.
Zucman tax review postponed by government
If the initial version of the Zucman tax that affects all professional assets is a red line for the Government, will the Socialist Party’s version make it possible to reach a compromise with the deputies of the central bloc? What is certain is that a categorical refusal by the latter to find a landing strip on the issue will be “of course, a casus belli”, warned Olivier Faure.
For his part, the leader of the MoDem deputies, Marc Fesneau, stated that he wanted the deputies to get out of the “Zucman tax totem pole.” “We have the impression that the Zucman tax will heal all of Egypt’s wounds,” he told franceinfo, calling for the pressure to be “reduced.”
The examination of the Zucman tax, which was to be held this Monday in the National Assembly, was postponed by the Government, which decided to alter the parliamentary calendar. In fact, the Minister of Public Accounts, Amélie de Montchalin, has announced that certain articles, in particular those relating to corporate taxation, will be examined as a priority, de facto postponing the examination of the Zucman tax until the end of the week.
A tactical report according to La France insoumise, which for several days has been calling a “fool’s game” and accusing the PS of colluding with the executive through “secret negotiations.” “Things are being negotiated that mean that the Socialist Party has not only changed its alliance, but also its line,” Mathilde Panot assured the RTL/Public Senate/Le Figaro Grand Jury. According to the head of the Insoumis deputies, the PS “is about to abandon everything” by proposing a “Zucman homeopathic tax” with an “almost zero” return.
In the face of these attacks, Olivier Faure claims “normal” contacts and a “fluid discussion” with Sébastien Lecornu, around a shared desire “to at some point ensure that France has a budget before the end of the year.” In unison, Amélie de Montchalin assured on Sunday that there was “no global agreement”, no “non-censorship pact” or “coalition agreement”. “There are issues on which we seek compromises,” he said at the microphone of “Political Questions” (France Inter, franceinfo, Le Monde).
Source: BFM TV
