Here is a surprise measure which was imposed on the menu of the finance committee of the National Assembly, in full examination of the finance bill for 2024: not revaluing the scale in a uniform way but by favoring the middle classes to increase slightly the tax of wealthier households.
Pascal Lecamp, Modem deputy for Vienne, at the forefront of the tax revolution? He tried with his colleague Mohamed Laqhila to vote for a minimum income tax rate of 0.1%, for everyone, so that the entire population contributes to the collective effort, even symbolically. This necessary measure to generate consent to tax may well have been welcomed in spirit by deputies from all sides… it did not hit the mark.
On the other hand, on Tuesday evening, October 10, the deputies voted, to everyone’s surprise, for an ambitious amendment from Pascal Lecamp and his colleagues from the Modem group. And this even with a hint of applause quickly calmed by Eric Coquerel, the president of the finance committee who is working this week on the finance bill for 2024, proof that his amendment has appealed beyond his simple political group .
A reduction of 15 to 20 euros for middle class tax
Several deputies, including from the ranks of the presidential Renaissance party, had presented amendments aimed at differentiating the revaluation of the thresholds of the income tax scale. The budget plans to increase the scale by 4.8%, a rate close to inflation, in order to avoid any perverse effect: in short if your salary increases, your tax will not increase too sharply.
| Income bracket by tax share | Rate applicable for the tranche |
|---|---|
| Up to 11294 | 0% |
| From 11295 28797 | 11% |
| From 28798 82341 | 30% |
| From 82342 177106 | 41% |
| More than 177106 | 45% |
Scale provided for in the finance bill for 2024.
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On the other hand, any freezing of the bar – as in 2012 and 2013 – leads to an increase in tax. The amendment defended by Pascal Lecamp proposes to freeze the thresholds for the 41% and 45% brackets, and to over-index (by increasing it by 5.6%) the first bracket, the 11% which affects the middle classes.
Result: this measure would reduce the tax of the middle classes (5th and 6th deciles) by 15 to 20 euros on average, those who are just on the edge of income tax, earning a little too much money to be non-taxable. For a very slight increase in taxes for the 10% wealthiest households. Budgetary impact: around 100 million euros more for the State.
Does this differentiated revaluation have a chance of happening?
The amendment has already achieved consensus within the Finance Committee, which brings together all the sensitivities of the National Assembly. Rebelote in the Chamber, during the examination by all the deputies? Perhaps… given the heterogeneous composition of the ranks of the National Assembly.
One clue, however: Jean-Ren Cazeneuve, the Renaissance general rapporteur for the 2024 budget and voice of the present majority within this committee, voted against this amendment. Only 45% of households pay income tax, explains Jean-Ren Cazeneuve. We have indexed the thresholds so that there are no new income tax entrants. I understand the intention to reduce the gaps but our desire is to reduce as much as possible the impact of inflation for those who work, whatever their income. I remind you that those who have income are already those who pay the most tax.
The government – which repeatedly insists there will be no tax increase – will most likely use article 49.3 to have its 2024 budget adopted. This will leave it free to select the amendments it considers to be priorities.
Budget 2024: these 5 votes on tax measures that will put the government under pressure