Post a Comment Print Share on Facebook
Featured Bank of Korea

The postponement of the removal of the housing tax in four questions

A postponement of the total abolition of the housing tax is being considered by the executive. The terms and the timing of this decision remain are unclear. th

- 38 reads.

The postponement of the removal of the housing tax in four questions

A postponement of the total abolition of the housing tax is being considered by the executive. The terms and the timing of this decision remain are unclear.

the fate of the property tax is still unclear. Uncertainties remain about the postponement of the total abolition of this tax for 20% of the wealthiest households, an assumption referred to on Tuesday by Emmanuel Macron. Initially, the relief of the property tax were to rise to 30 % in 2021, and 65 % in 2022. Before a total ban in 2023, representing a tax cut of seven billion euros. The disappearance of this tax for 80% of French the more modest began in 2018 and will be acquired this fall.

READ ALSO >> Macron puts the youth at the heart of its recovery plan

During his interview at the presidential, Emmanuel Macron has justified any deferral by the economic situation. "A possible option would be to move a little, for the more fortunate of us, the removal of the housing tax, which may be something legitimate in a period of crisis", said the president of the Republic, taking care to refer the case to Jean Castex. When asked about this turnaround, presidential, members of the executive are still struggling to draw a trajectory, tax clear. The Express makes the point.

Postponement or cancellation ?

No question today to call into question the complete elimination of the property tax. Neither the head of State, nor no minister spoke in this sense. On Wednesday, the minister of Economy and Finance Bruno The Mayor has assured that the tax would be "well removed". "I want that there is no ambiguity, the promise of the president of the Republic has been held for the 80 % (of households, editor's NOTE) and it will be held since the removal of the housing tax has been voted on, has-t-he launched Wednesday during an interview with the newspaper 20 hours of France 2.

Renounce this commitment could be risky legally. By the end of 2017, the constitutional Council had warned the executive against the maintenance of a tax for 20% of households, in the name of the principle of equality before the tax. The wise men had validated the principle of a progressive removal but were left the possibility to "re-examine these questions including how they will be treated in the situation of taxpayers remaining subject to the housing tax in the framework of the announced reform of local taxation."

What type of report ?

The question is not clear. On Wednesday, Bruno Le Maire, has acknowledged that questions existed within the government between the opportunity to 'take a little more time" to finalize the deletion of the housing tax '"because actually it's expensive", or delete "by 2023 as it was intended," for the 20% of French households that continue to pay. Interviewed by Les Echos, the government spokesman Gabriel Attal speaks of a "possible postponement".

If the report was accepted, its terms are unknown. Two options are on the table : refer consistently to the 20% of French or make a distinction between them. "Is this that separates the 20% of the 5% who are really the richest, who will be asked an additional effort ? This is a second option", said this Thursday on France Inter, Bruno Le Maire. "These are options that are on the table, I will consult with parliamentarians to see what they think, make proposals to the Prime Minister, and then the trade-offs final will be made," observed Wednesday, the minister of Finance.

What calendar ?

again, nothing is decided. "At this point, no timetable is set," says Gabriel Attal. Bruno The Mayor has not committed to a specific date. Jean Castex was more disert in his interview to the Parisien : "It would not be to increase tax but to shift one or two years, a decline that has already been programmed. You do not create a tax in addition, you would delay a tax less".

Why the subject is so sensitive ?

Because the government is caught between the two fires. The removal of the housing tax is a commitment of Emmanuel Macron, such as that of not raising taxes despite the economic crisis. "There will be no increase in taxation, insists Gabriel Attal in The Echos. We will not repeat the solutions of the short-term that have proven to be disastrous for the attractiveness in the long term." "There are a lot of middle class and we want to protect the middle class, we do it by refusing any tax increase," observed Wednesday, Bruno Le Maire.

Read our complete file

Macron intends to offset the removal of the housing tax for the wealthy, The Senate voted for the removal of the housing tax, but in a longer period to Remove the property tax for 80% of households by 2020, 100% by 2023

In parallel, the executive must deal with the public accounts and gradients calls for help the more affluent. "We're going to make a lot of expenses, including to assist households and businesses. We can't let it all slip away", explains Jean Castex in Paris. For his part, Bruno Le Maire speaks of an "extra effort" of the most affluent, through this report.

Your Name
Post a Comment
Characters Left:
Your comment has been forwarded to the administrator for approval.×
Warning! Will constitute a criminal offense, illegal, threatening, offensive, insulting and swearing, derogatory, defamatory, vulgar, pornographic, indecent, personality rights, damaging or similar nature in the nature of all kinds of financial content, legal, criminal and administrative responsibility for the content of the sender member / members are belong.