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Record deficit breaks taboo on tax increases

It only took three words and everything went up in flames. “Collect fees. » Barely published in the press, the hypothesis put to the test by Michel Barnier during his consultations triggered an avalanche of proposals on the left, sowed confusion on the right, caused nausea among Macronists and strained negotiations to form a government. To the point that the Prime Minister published an update visibly intended to calm tempers. “We are already the country with the highest tax burden”stresses the new tenant of Matignon, without revealing any more.

Watch the live broadcast | Live political news: After several missed meetings, Michel Barnier was welcomed by Emmanuel Macron at the Elysée

Three little words and that’s it? Indeed, the protest was impressive, since taxes constitute an important political marker. For the Macronists, who want to continue participating in the government despite their failure in the elections, raising taxes seems unimaginable. This would be a denial of their past action.

Gérald Darmanin was categorical: “It is out of the question that we will join a government or support a government that increases taxes”warned the resigning Minister of the Interior on France 2 on Wednesday 18 September. “I’m going to fight (…) to protect the French from tax increases », continued Gabriel Attal, now leader of the Macronist deputies, in the weekly The point.

“An exceptional and reasonable effort”

“Massive tax cuts for businesses and households over the past seven years have been key to our economic success, allowing new factories to open and more than two million jobs to be created., supports, with the World, the deputy (Renaissance) of Yvelines Charles Rodwell. To question this supply policy in a general way would be a mistake. No tax increases, that’s also the case. “red line” of the Les Républicains (LR) party, repeated again on Wednesday by its vice-president Valérie Boyer.

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However, several economists and political leaders, even on the right, consider an increase, at least temporarily, in taxes to be inevitable, given that there is very little money in the coffers. It is necessary “Lifting the taboo on tax increases”said the governor of the Bank of France, François Villeroy de Galhau, on Tuesday. In an interview with Parisian, He suggests “an exceptional and reasonable effort for certain large companies and certain large taxpayers”.

In front of the “berezina in the public accounts”, It will be necessary “Perhaps I will accept some additional new and temporary efforts” On the fiscal front, Jean-François Husson, the Senate’s budget rapporteur, who recently distanced himself from LR, also told Agence France-Presse. As for the National Rally, although it is opposed to an increase in compulsory contributions, its leaders do not rule out voting in favour of certain taxes, provided that the middle classes and SMEs are protected.

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Anthony Robbins
Anthony Robbins
Anthony Robbins is a tech-savvy blogger and digital influencer known for breaking down complex technology trends and innovations into accessible insights.
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