What is the “taxation of annuities” that Prime Minister Gabriel Attal wants to put in place by June ?

What is the “taxation of annuities” that Prime Minister Gabriel Attal wants to put in place by June ?

Avec cette réforme, Gabriel Attal souhaite apaiser une partie de sa majorité. MAXPPP – LUDOVIC MARIN

Gabriel Attal promised this Tuesday, April 2, proposals "by June" to tax "rents", in the hope of calming part of its majority, worried about its plan to reform unemployment insurance and a poorly distributed effort to absorb deficits.

At a group meeting at the National Assembly this Tuesday, April 2, the Prime Minister announced his intention to entrust the majority with a mission to make it < em>"by June" proposals "on the taxation of annuities". What is the purpose of this mission and who is concerned? We'll explain.

While the opportunity to increase taxes to restore public finances divides the presidential camp, the Prime Minister announced this Tuesday the establishment of a working group on the taxation of annuities.

"We are going to settle this debate together, because we must not suffer, but we must be on the offensive" for "advance in a coordinated, coherent manner", explained the head of government to the Renaissance group at the National Assembly , according to comments reported by Matignon. He wanted "the entire majority to be associated" to this work which will be led by Jean-René Cazeneuve, Budget rapporteur.

Neither the middle classes nor businesses

Gabriel Attal had already opened the door last week to this idea of ​​taxation. He had said on TF1 that he never had any dogma on the subject.superprofits, but refusing to touch two "red lines": the middle classes and businesses.

It's about differentiating "wealth which creates employment" and that "which is stagnating", explains an advisor to the executive.

Taxation would apply from the 2024 budget – which would require a law rectifying this budget (PLFR) – and would not be limited to energy companies. It could relate to rents received, stock market income, life insurance or even real estate wealth tax.

An initiative criticized

Left and right immediately criticized the initiative. "We don't add taxes to taxes when we hold the world record for compulsory deductions", castigated the boss of the Republicans Eric Ciotti, who threatens to censor the government on its management of public finances.

"Instead of these artifacts, the executive must submit a PLFR (amended finance bill) to the Assembly", asked the rebellious president of the Finance Committee, Eric Coquerel, recalling like the PS deputy Arthur Delaporte that’ there are "solutions already on the table" oppositions.

Gabriel Attal intends above all to respond to the concerns of the majority, whose left wing is very angry against the new reform of unemployment insurance, which could be done by decrees, without going through parliament.

A reform assumed by the Prime Minister

The Prime Minister reiterated "assume" such a reform but the President of the National Assembly Yaël Braun -Pivet expressed reservations, as did the president of the Law Commission Sacha Houlié, for whom reducing the duration of compensation is "not the right path& quot;, "even though we see that unemployment is no longer falling".

"When I hear you say that we should not reform because unemployment is stagnating, I do not agree& ;quot;, replied Gabriel Attal on Tuesday, defending a reform "of productivity and prosperity" : "we want to finance public services and nursing homes" and not "further increase the medical deductible".

Details expected next week

This reform comes at a time when the executive is everywhere looking to make savings after the unprecedented slippage of the deficit to 5.5% in 2023.

Gabriel Attal reiterated on Tuesday that he still wanted to bring it back to 3 % in 2027 and recalled that the government would give next week "the trajectory" to achieve this goal.

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