It is a key measure in Emmanuel Macron’s five-year term, which is unlikely to outlive him if he is not re-elected in two weeks. A large majority of the candidates want, in fact, the return of a wealth tax, with a broader base than the IFI created by the outgoing president.
This is one of the major tax reforms of the last five years, undoubtedly one of the most controversial: as soon as he came to power in 2017, Emmanuel Macron signed the death warrant for the Wealth Solidarity Tax (ISF), to replace it with a real estate wealth tax (IFI) with a much more restricted scope. It applies, in fact, to wealthy households whose net taxable value of real estate assets exceeds 1.3 million euros, after deduction of debts and a reduction of 30% on the value of the principal residence.
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Four years later, the ISF could however be reborn from its ashes. A majority of candidates for the presidential election, the first round of which takes place next Sunday, have indeed announced their intention to restore a wealth tax on a broader base than the current IFI. Here is how the two camps, those for and against, are divided and what their arguments are.
The yes side
For once, the wealth tax is a subject that brings together two generally antagonistic camps: that of the left ticket candidateson one side, and that of far-right sovereignists, the other. However, with important nuances.
Let’s start with the most radical. No details at Nathalie Arthaud: query by The echoesthe candidate of Lutte Ouverte does not want to discuss rates or base, but announces a measure of public safety: the pure and simple expropriation of large fortunes and large companies of which they are owners.
Three left-wing candidates not only want restore the ISF, but also harden it compared to what it was before 2017. Echoes early March, Philippe Poutou, of the New Anti-Capitalist Party (NPA), has announced its desire to rebuild a tax on wealth including all assets, production tools and works of art included and which is highly progressive (with a strong reduction in the impact of the tax shield). The communist Fabien Roussel (PCF), explains in its program, France happy days, its intention to restore the ISF and to triple its amount, without further details, thanks to an increase in its rate and its progressivity, and the elimination of certain niches tax. Always at Echoes, Jean-Luc Mlenchon also promised a return of the ISF, but of a reinforced ISF, with a better progressiveness of the scale and the reduction of certain unfair deductions. It also plans to (…) increase this ISF for taxpayers with the most polluting heritage.
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Finally, one candidate wishes the restoration of the ISF as it existed before Macron’s five-year term, without announcing any change in rate or scope: this is John Lassalle (Let’s resist!).
A climate ISF
One Climate ISF. The idea is both present in Yannick Jadotthe ecologist candidate (EELV), and Anne Hidalgo, of the Socialist Party (PS). The first wants to replace the IFI with a tax on all assets, including professional assets, from 2 million euros, he explains to the Echoes: A progressive scale will be applied which will start with a rate of 1% for the first tranche, and will be 3% for the highest tranche. This scale will be moderated by a sort of bonus-malus of 0.5% +/- 0.5%, depending on [la] energy performance (for real estate) or [le] carbon score for financial assets. The socialist candidate, for her part, announces, still in The echoesthe establishment of a Climate and Biodiversity ISF, which will be fully affected by the ecological transition.
A wealth tax, yes, but without the main residence
In the sovereignist camp too, we want to restore a tax on very large estates, while exempting certain assets. It is the project of Marine Le Pen. Its tax on financial wealth (IFF), the scale of which would be based on the current IFI, would exclude the main residence, as well as professional property and works of art held for more than 10 years. Same exception for the main residence at Nicolas Dupont-Aignanwhich also wishes to deduct from the base the patriotic investments made in SMEs producing in France.
The no side
Finally, the candidates hoping, conversely, to further reduce the tax burden on the wealthiest households are rare. In this camp, we find Valrie Pcresse (The Republicans) and Eric Zemmour (Reconquest!). Both want to lighten the IFI by withdrawing from its base all or part of the value of the main residence: half for the first (against 30% currently) and all for the second.