A new term appeared in the Bercy lexicon this fall: “accidentology” – art of assessing the risk of an “accident” during the budget debate in Parliament, in the event that costly amendments are adopted against the advice of the government. An increased risk when the executive governs with a relative majority. And which takes on a particular color in 2023: the debt exceeds 3,000 billion euros, interest rates have settled above 3% and the rating agencies have their eyes trained on France.
Enough to make Bercy feverish: the ministry would like to activate article 49.3 very early, even if it means limiting the debates in the Chamber on the 2024 finance bill (PLF), which are due to begin on Tuesday October 17. Objective: avoid any budgetary slippage and maintain the objective of reducing the deficit to 4.4% of GDP in 2024 (after 4.9% targeted in 2023). “A rushed 49.3 is not a serious track,” we nevertheless temper ourselves at Matignon.
Bercy’s fears seem justified in view of the first debates which took place Tuesday evening on the PLF, examined until Friday in the finance committee of the National Assembly. They repeatedly forced a precise count of the votes for each amendment, with several of them narrowly rejected – on the taxation of polluting vehicles or the increase in taxation of holding companies – and many others adopted.
MoDem amendments adopted
The finance commissioners began by rejecting, on Tuesday evening, the introductory article of the PLF, which summarizes the recovery trajectory of public finances by 2027. They then adopted several amendments from the MoDem: one proposing to index the income tax scale according to inflation, but in a differentiated manner, in order to make the wealthiest contribute more. Another from Jean-Paul Mattei (Pyrénées-Atlantiques), adopted with the support of the right, aims in the context of the housing crisis to create a “real estate investor status”. It lowers the taxation of property income of owners, by aligning it with the lower taxation of capital income, if they agree to rent their property for more than a year under certain conditions. “You think we’re throwing out amendments on the fly, it’s annoying. We are not of the same opinion, but it is considered”launched Mr. Mattei to the majority.
An amendment from Eric Coquerel, the La France Insoumise (LFI) president of the commission, identical to another from the MoDem proposed in 2022 which provided for a temporary surcharge on superdividends from large companies, was also passed. As well as a second by the same author, exploring the idea of a “targeted universal tax” for French people leaving for countries with privileged taxation, in order to fight against tax exile. “There is clearly a majority in favor of seeking additional revenue by taxing the superrich more in this 2024 finance bill”rejoiced Eric Coquerel on X (formerly Twitter).
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