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The first round begins in the Assembly for the 2018 budget

Ⓒ AFP – Eric FEFERBERG – | The Minister of Economy, Bruno Le Maire during a hearing in the National Assembly on October 4, 2017

Already criticized for its “injustice”, with the elimination of the emblematic ISF, the first budget of the Macron quinquennium began on Tuesday its parliamentary course in the Assembly, where the majority wants to bring in commission of first modifications to “correct the angles dead. ”

Mixed budget cuts and targeted tax cuts, the 2018 budget bill is “the budget of promises kept,” boasts the Minister of Public Accounts Gerald Darmanin.

And France, the last Eurozone country in the excessive deficit procedure with Spain, must regain its “credibility in Europe” and anchor below the 3% deficit, argues Economy Minister Bruno The mayor. A return to 2.6% of gross domestic product is promised for 2018, after 2.9% in 2017.

For several weeks, the left denounced a budget of “gifts to the rich”. The Republicans, faced with two ministers from their party, criticized a budget “anti-proprietors”, “anti-retired” (with the CSG increase included in the draft budget of the Security), and “anti-communities”.

These crossfire will have repercussions in the Finance Committee, where 550 amendments are on the menu Tuesday and Wednesday on tax revenue.

The transformation of the wealth tax into a tax on the “real estate asset” (IFI), combined with the introduction of a flat tax of 30% on the income from capital, will crystallize many exchanges.

President of the New Left group, the socialist Olivier Faure denounces “a tax armor” for the richest. The Socialists have tabled a “counter-budget”, returning in particular to the reduction of assisted jobs or housing subsidies. The Communists want to “remove the most shocking provisions”, the Insubmiss also intend to defend counter-proposals.

– yachts and ingots –

Faced with criticism, Edouard Philippe “assumes” the choice to “reinvest more capital in the economy” to allow him to “innovate and create employment”.

It also ensures that the “transfer of purchasing power” to the assets “has no equivalent” with the progressive abolition of the housing tax for 80% of households, the abolition of sickness and unemployment contributions for workers and the increase in the activity premium.

Given the controversy notably on yachts or other gold bullion that would escape the new tax on real estate fortune, the copy will however be reviewed.

The LREM group wants to tax, from 30,000 to 200,000 euros per year, French residents who own vessels exceeding 30 meters. The tax on the transfer of precious metals is going to be heavier, a tax on luxury cars created. Measures that will have a limited return, from 40 to 50 million euros.

The majority In Marche-MoDem tabled, among others, amendments to create a mission to follow up the reform on the ISF / IFI.

However, the debate is far from closed by the majority: the President of the MoDem, François Bayrou, said that the reform of the ISF “only by far” corresponded to the project presented during the campaign, “promote accumulation”.

Like the LREM group, the MoDem wants to “ensure that the French saving is well invested in the productive economy”, especially SMEs, which is “a gamble”, according to Jean-Noël Barrot. The Modem also wants to “send a signal to the associations” by another set of amendments.

For Constructives, generally satisfied with the decline in corporate taxes, Charles de Courson (UDI) judges that “the government has done 80% of the work in the right direction” on the ISF, but “regrets” the creation of a tax on real estate.

For the president of the LR Christian Jacob group, the majority “does not go far enough” on the ISF and “we must assume” a deletion outright.

Before the budget, MEPs adopted in the early evening the law of programming of public finances, which foresees a quasi return to equilibrium in 2022, with solid growth and a drop of nearly four points of the share of public expenditure in GDP.

Several amendments by rapporteur Joël Giraud (LREM) were adopted, as well as two by Socialist Valérie Rabault and one by Insoumis Eric Coquerel, mainly to strengthen Parliament’s information on the details of the evolution of public spending.

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