While the debates around the next budget have been lively and intense for several weeks already, the start of the budget marathon officially sounded in the Assembly. This Wednesday, October 16 at the end of the day, the finance commissioners began examining the finance bill for 2025, adopting in particular article 3 of the text which contains one of its flagship measures, namely theestablishment of the differential contribution on high incomes (CDHR).
Discussions began around holding a draft amending finance law (PLFR)demanded by the opposition to the former majority at the end of last spring, and now supported by the deputies of Ensemble pour la République. An amendment to this effect Mathieu Lefèvre (EPR) was thus adopted, in order that the government can take “all necessary measures to act on public spending in 2024“, and with the objective of achieving an effective deficit of less than 6% of GDP, compared to the 6.1% forecast at this stage.
Contribution of high-income households: the sustainable measure
Identical amendments defended by Aurélien Le Coq (LFI), Michel Castellani (LIOT) or even Christine Pirès-Beaune (Socialists) proposed to de-index to inflation the last two tranches of income tax. The general rapporteur of the finance committee, Charles De Courson (LIOT) told them that this measure would bring “between 100 and 200 million euros“, or a gain”very weak“, inviting his colleagues to “focus [les] debates on the differential contribution on high incomes“.
This was done with the examination of article 3, which governs the conditions of this new taxation aimed at ensuring minimum tax of 20% of highest incomesor the taxpayers whose income is greater than 250 000 € for single people, and 500 000 € for couples with joint taxation. David Amiel (Together for the Republic)evoking the “tax shield, which is a maximum amount of tax that can be claimed“welcomed the introduction of”and filet fiscal which, in the same way, ensures a minimum contribution from the most fortunate“.
On this subject, an amendment from Charles De Courson was adopted, in order to remove the adjustments provided for subjection to the CDHR, which, taking into account tax advantages and tax credits, caused certain households to pass through the new tax, thus undermining its base (theoretically a little more than 62,000 homes). Objective of the amendment: to increase the number of households concerned, which without its contribution was estimated at “only 24,000“ homes through Bercy, as Charles De Courson recalled, and thus reach the 2 billion in revenue expected by the government.
Everything that is temporary and one-off in this budget concerns the highest incomes, everything that is decided in a definitive and stable manner concerns everyone else. Eric Coquerel (LFI)
“A tax justice measure is not limited in time” has, moreover, considered Jean-Paul Matteï (The Democrats). The latter, likeAurélien Le Coq (LFI), Danielle Simonnet (Ecologist and social) or even Philippe Brun (Socialists), defended the sustainability of the CDHRprovided for in the text for income for the years 2024, 2025 and 2026 then intended to disappear. If the groups Together for the Republic and of Republican right opposed the measure, Charles De Courson he handed over to his colleagues through an advice of “wisdom”. “Everything that is temporary and one-off in this draft budget concerns the highest incomes, everything that is decided definitively and stable concerns all the others“, argued Eric Coquerel (LFI) in support of the amendment finally adopted.
NFP and MoDem MPs strengthen “tax justice” measures
The deputies adopted a little later an amendment presented by the chairman of the finance committee and resulting from of the work of the information mission on the universal tax which he had led Jean-Paul Matthew (MoDem) in 2019. This amendmentEric Coquerel (LFI) aims to establish “targeted universal tax“, consisting of “affect taxpayers above a certain income, who go to a country with a tax rate more than 50% lower than that of France, in order, over a given period, to tax them on a differential between what they pay in this country, and what they would have paid if they had stayed in France“.
Jean-Paul Matteï, whose group is part of the “common base” by Michel Barniersupported this amendment from Eric Coquerel, who returned the favor by then voting, in unison with the members of the NFP, the amendment of the former president of the Democratic group passing the amount of single flat-rate levy (PFU)commonly referred to as flat tax, from 30 to 33%. Faced with representatives of other “common base” groups who opposed the measure, and groups from the New Popular Front, who would have wanted to push the rate up to 40%, Jean-Paul Matteï argued:a good compromise of tax justice“allowing “rebalance the participation of capital income in relation to labor income which contributes more to the State budget“.
The work of the Finance Committee will resume this Thursday, October 17, at 9 a.m., and will continue until the end of the week. To be validated by the National Assembly, the amendments voted on in committee must be voted on again during the debates in the hemicycle.which will begin next Monday.
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