The french left detailed this Friday that, if he wins the legislative elections on June 30 and July 7 and can form a government, he will massively increase taxes on the rich, with 100,000 million euros more starting next year to fully cover the increase in the tax. expense that your program foresees.
In the presentation this Friday of the large figures of that program with which the four parties of the so-called New Popular Front are presenting themselves to the elections, those responsible described it as “a quiet breakup.”
The socialist senator Alexandre Ouizille indicated at a press conference that his idea is that “The State should not be a mere spectator, but should become the actor that organizes social redistribution and ecological planning” for “put out the social fire” caused by the seven years that Emmanuel Macron has been French president.
This will be done first of all with an increase in the minimum wage of the 14%from the current almost 1,400 euros per month net to 1,600 euros, an increase of 10% of the base remuneration of civil servants and the indexation of the rest of the salaries with inflation.
Free public education will be extended to dining and school transportation, as well as extracurricular activities, and the left also intends to hire thousands of teachers to reduce the number of students per class.
Other major priorities will be to accelerate the thermal renovation of buildings, strengthen the renewable energy sector and offer a subsidy to guarantee the emancipation of young people and that they do not fall into poverty.
100,000 million more expenses, covered by taxes
In total, public spending in the remainder of 2023 would increase by 25,000 million euros, and by 100,000 million in 2025, which could be 150,000 million annually by 2027.
“We are going to put income against these expenses, so that we will not increase the deficit,” Ouizille stressed, adding that they have even been conservative in their calculations because they have not wanted to take into account the additional revenue that will be obtained from the acceleration of economic growth due to the stimulation of consumption that they believe the salary increases will generate.
On the side of the new taxes, the coalition, which brings together La Francia Insumisa (LFI), the Socialist Party (PS), the Ecologists and the French Communist Party (PCF), assured that they will allow “sharing the wealth” and will not affect the 92% of the population.
LFI deputy Éric Cocquerel, who has been president of the Finance Commission of the National Assembly, explained that the “tax gifts to the richest” that Macron granted, starting with the call ‘flat tax’ or single type of 30% to capital income.
The Popular Front not only intends to restore the Wealth Tax (ISF) that the current president eliminated when he arrived at the Elysée seven years ago, but there will be fewer exemptions than in the past and it will have a new environmental dimension. It should make it possible to raise 15,000 million euros per year.
Tax on ‘super profits’
Will be taxed “super benefits” of companies and 14 brackets will be established in the income tax so that there is more progressivity. Those who earn more than 4,000 euros per month will have to pay more.
Also with the desire for greater fiscal progressivity, a “golden inheritance tax” contemplates that the maximum inheritance that can be transmitted will be 12 million euros, which should allow the public coffers to enter an additional 17,000 million euros.
If the Popular Front wins the elections, in the first weeks it would annul Macron’s pension reform, which progressively delays the minimum retirement age from 62 to 64 years.
Although the electoral program includes as “aim” lowering that age to 60 years by 2027, Ouizille insisted that all of this would have to be negotiated with the social partners, in which other parameters such as the level of pension or the years of contributions would have to be discussed.
After the European Commission on Wednesday opened an excessive deficit procedure to France, like other countries, the socialist senator took pains to repeat that, if they governed, they would not increase the hole in public finances.
And he also implied that although the left does not share the rules of the Stability Pact, in particular on the deficit limit of the 3% of GDP, its renegotiation is not a priority.
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Source: Gestion
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