“I don't have time or desire to cause controversy”: How taxes are creating a fault line in the ruling coalition

Gérald Darmanin juge le projet du gouvernement “inacceptable”. MAXPPP – Vincent Isore

Alors que les projets du gouvernement se précisent, Gérald Darmanin ne votera pas la hausse de la pression fiscale ciblée envisagée par Michel Barnier. Le Premier ministre lui a répondu jeudi soir, sur France 2.

The fragile coalition formed by the right and Macronie is cracking as the budget presentation approaches on October 10. Gérald Darmanin, one of the leading figures in the presidential camp, judged, on Thursday, "unacceptable" the perspectives outlined in recent hours by the government.

"I will not vote for a tax increase", warned the MP on France Info. "I don't have the time or desire to cause controversy. If he has good ideas to find other solutions and reduce the debt, I remain open”, replied the Prime Minister, Thursday evening on France 2.

According to the details provided by the Minister of the Budget Laurent Saint-Martin, Thursday, this contribution "exceptional" the recovery of public finances will concern, "0.3 % of households", or for example "a household without children who earns approximately 500,000 euros per year".

300 companies targeted

Some 65,000 households will be impacted, specifies Bercy. The target will be people with an annual income of more than 250,000 euros, La Tribune has learned. For an expected saving of 2 billion euros.

On the business side, the government is planning a corporate tax surcharge of 10% from 1 billion euros of turnover and 15% beyond 3 billion euros, reports the daily.

“300 companies” will be affected for a year or two, Michel Barnier said, refuting any "tax shock".

The anger of retirees

Measures generally approved by the French: according to a BVA Xsight poll for RTL, published Wednesday, 71% of them are in favor of increasing taxes for the richest.

But according to Gérald Darmanin, all this amounts to "an increase in the cost of work". Several political leaders, particularly on the right and within Macronie, had thus made the increase in taxes a red line.

On Monday, Nicolas Sarkozy had also stated that an increase in taxes would weigh on employment, growth and investment. “For me, it is not possible, France is the country that pays the most taxes”, added the former President.

While the public deficit is expected to be more than 6% of GDP in 2024 and France is targeted by a European procedure for excessive deficits, the government is considering 40 billion euros in savings and 20 billion euros taxes.

A balance of power is established

A headache for Michel Barnier who must have the 2025 budget adopted by Parliament, without an absolute majority and under the threat of censure. The six-month postponement of the revaluation of pensions is, at the same time, provoking the anger of retirees.

Even his "allies" of circumstance, Gabriel Attal and Gérald Darmanin, are therefore establishing a balance of power by reminding that their support is not a given. A sign that Gérald Darmanin's approach is not an isolated act, his statement on taxes was officially relayed on Thursday by the Renaissance group on its X account.

A “single social allowance”

The Prime Minister also promised, on France 2 Thursday evening, to "take a break from standards" to help farmers. The government also plans to “merge public services” and “probably not replace all civil servants”, with savings also in support for apprenticeships and health transport. He also wants a “single social allowance” so that “"it pays more to work". Regarding immigration, “I am the one who sets the line", he specified, and “there will be rigorous measures to control it". Michel Barnier affirmed that there was no “negotiation” with Marine Le Pen. He also said that he “personally agreed" with the initial version of the bill on the end of life.