Wednesday, 26 January, 2022

Bruno Le Maire said he was “totally opposed” to the abolition of tax loopholes

Finance Minister Bruno Le Maire said on Tuesday he was “totally opposed” to the removal of tax loopholes, proposed by some members of the majority and the government in order to strengthen tax equality in France.

“I am totally opposed to it, as I am opposed to any tax increase,” said Mr. Le Maire on RTL, taking the example of tax credits for home employment, essential according to him to the functioning of the French economy.

“Jobs at home are hundreds of thousands of jobs in our territory, it is a help to all the people who work (…) Let us not touch what works in our country”, a- he added.

The Minister of Public Accounts Gérald Darmanin had proposed at the beginning of February to plan the tax loopholes for the wealthiest French, either by introducing “conditions of resources” or by reducing their “overall ceiling”.

14 billion euros in tax credits

The objective is to ensure that they “benefit the middle classes” rather than “the better-off”, had justified the minister, according to whom the richest 10% of French people monopolize 50% of the 14 billion euros in income tax credits.

Faced with concerns, Gérald Darmanin had however ruled out touching tax credits for home employment and childcare, the main tax niche for households, with a cost of 6.5 billion euros.

“The red line of the Minister of Finance, it is very clear: it is the increase of taxes or the creation of new taxes”, warned Bruno Le Maire, while the opposition LR was worried about the proposal of Mr. Darmanin, which in her opinion could lead to an increase in the tax burden on households.

According to the Ministry of Public Accounts, Mr. Darmanin’s proposal would not, however, lead to a tax increase, the money recovered by the State in the event of stricter supervision of tax loopholes to be redistributed.

In total, 474 tax loopholes exist today in France. Some, such as the Research Tax Credit, concern businesses. Others, like the Pinel scheme, concern households. Their total cost amounts according to Bercy to nearly 100 billion euros.

(with AFP)

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