Tax credit on APL, deduction of loan interest, more detailed tax notice… Many amendments adopted in the Finance Committee or voted in the Chamber were not retained by the government in the project of budget 2023 adopted Wednesday with the weapon of 49.3. Too bad for some wallets.
On Wednesday, by engaging the responsibility of her government, Elisabeth Borne nevertheless retained a hundred parliamentary amendments in the version of the budget submitted to 49.3. Tax, tax credit, value of restaurant tickets, some of them will have a direct effect on the finances of the French. Others, which had been voted on by the deputies, were deleted by the executive from the final text.
Ehpad: the transformation of the tax reduction into a rejected credit
The ambition of the PS deputy, Christine Pirs Beaune: to improve the financial health of people housed in nursing homes, and in particular of the most modest. Alas, the amendment votes to transform the current tax reduction for accommodation costs for dependent persons into a tax credit was withdrawn from the final text by the government.
Currently, people domiciled in France for tax purposes benefit from a tax reduction equal to 25% of expenses incurred, up to a limit of 10,000 euros, when they are accommodated in an nursing home. An advantage that only benefits households that pay income tax.
Property tax: the cap on the increase rejected
The forecasts are bad: the rental value which serves as the basis for calculating the property tax will increase in the coming years. We are talking about 7% in 2023 against 3.4% in 2022. Elected officials wanted to cap (3.5% in metropolitan France and 2.5% overseas) the increase for protect households from inflation, but this amendment was removed from the final text.
In 2022, the property tax soared in several large cities: +16.6% Marseille, +15.4% Tours, 12.6% Strasbourg or even 10.8% Montreuil. On average, an owner paid, in 2021, 849 euros in property tax for all of his properties, according to the General Directorate of Public Finance (DGFiP).
No tax credit on APL
With the same logic as for low-income people in nursing homes, an amendment proposed to grant recipients of housing assistance (APL) a tax credit to increase it beyond the 3.5% decided on July 1 by the government. And this in order to support tenants faced with a much higher rise in energy prices. An argument that did not convince the executive.
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The tax notice will not be more detailed
Is the tax notice sufficiently clear and detailed? Wide debate but the answer was no for some deputies who asked that the mention of the average tax rate and the marginal tax rate appear on the document. The proposal was withdrawn, ultimately.
The status of real estate investor will not see the light of day
Creating a status of real estate investor with application of the flat tax or single lump sum levy (PFU) was proposed for the 2023 budget. 12.8% and 17.2% in social contributions. This amendment should thus allow owners with the highest tax brackets to pay less tax on their rental income. This new status would have been proposed in return for a commitment to rent the property for more than a year, with rent control and the requirement of a category A D energy performance diagnosis.
In the end, this amendment did not find a place in the government’s final text.
Loan interest deduction: no rollback
In the Laws Committee, the deputies considered reintroducing – in a modified form from the Sarkozy era – the deductibility of loan interest for first-time buyers. Clearly, it would have been possible to deduct, with a ceiling of 3,750 euros per year for a single person and 7,500 euros for a couple, up to 30% of the loan interest. The measure was not adopted.
MoneyVox / SA with Carole-Anne CORNET, Marie CRETON and Benoit LETY / October 2022