The National Assembly approved on Friday the transformation of the real estate wealth tax (IFI) into a “tax on unproductive wealth”, the result of a heterogeneous alliance that brings together RN, PS, MoDem and deputies from the centrist Liot group. An amendment by MoDem MP Mattei, subamended by PS MP Philippe Brun, was approved by 163 votes to 150.
If Brun welcomed before the press the “reestablishment of the wealth tax” abolished by Emmanuel Macron in 2027, the Renaissance deputy Prisca Thévenot estimated that what had been voted on was “a tax invented by Marine Le Pen herself” and in no case the return of the ISF, “otherwise (…) La France insoumise would have voted in favor.”
“Tax the savings of the French”
Horizons MP Sylvain Berrios criticized a measure that will “tax the savings of the French.” The left outside the PS voted overwhelmingly against the amendment. “We have weakened the IFIs without even reintegrating the FSI,” said the president of the Finance Committee, Insoumis Eric Coquerel.
The Prime Minister’s entourage stressed that the Government is “opposed to the reestablishment of the FSI.” Mr. Mattei’s amendment provides in its original wording to include in the tax base “unproductive assets”, such as “non-productive real estate, tangible movable property (precious objects, cars, yachts, airplanes, furniture, etc.), digital assets, life insurance for funds not intended for productive investments”, according to its explanatory memorandum.
A modified scale
On the other hand, productive real estate assets are removed from the IFI base, considering those properties leased for a period of more than one year and that meet environmental criteria. It also modifies the IFI scale, replacing the progressive scale with a single rate of 1%.
A subamendment by Mr Brun, presented during the parliamentary break at the beginning of the afternoon and adopted by deputies, excludes from the base one property per tax household, within the limit of a reduction of one million euros.
A narrow modification had been presented by the RN, excluding the main or sole residence from the base, in accordance with its proposal for the Financial Wealth Tax (IFF).
Another subamendment by Mr. Brun restores rental properties to the base. Mattei wanted to increase the tax payment threshold to two million euros, but another subamendment by Mr Brun kept the threshold at 1.3 million euros.
Source: BFM TV
