3 billion euros for the State withdrawal of 3

It is a true work of co-production that the Ministry of the economy and the National Assembly are engaged for the commitment of Nicolas Sarkozy to remove the tax on the equipment and movable property (19 billion euros) from next year. The parliamentary project, presented yesterday by Gilles Carrez and Marc Laffineur on behalf of the UMP, Jean-Pierre Balligand and Didier Migaud on behalf of the PS, is not very different from that presented by Bercy current April. Last week, the economy Minister, Christine Lagarde, is even referred to as "spontaneously seduced" by their script. It is the parliamentary work several advantages of size: developed in close consultation with the local elected representatives and employers organizations, it allows to "clear a way for compromise between numerous constraints", welcomed yesterday the budget rapporteur, Gilles Carrez. This "cooperative" exercise resembles that began last year tax niches caps, noted Bercy: on the basis of an administrative report, MEPs had made proposals twice then by Christine Lagarde in finance law.

7.5 billion for relief

Second advantage: the reform presented yesterday is less expensive than the options outlined by the Executive power April. It represents a net cost of 6.3 billion euros for the State, withdrawal of 3.7 billion from what referred to Bercy. If this scenario is selected by the Elysee, the reform will lead to a relief of tax of 7.5 billion for businesses, including 45 for the benefit of the industry. Nevertheless, some institutions would be losers: "this is justified because some taxpayers, or even certain sectors are currently undercharged", indicate parliamentarians, take for example a firm carrying out 40 million euros of turnover and with only 40,000 euros of TP.

Sensitive points

Employers would be more subject than to two taxes local, sitting on land (EUR 5.7 billion) and value added (EUR 12.8 billion). The first level will be set by the Commons, but must evolve to keep pace with the taxes of individuals, to "prevent the local temptations to protect households." The second will be fixed at the level of national and extended to all business (contrary to the scenario of Bercy) instead of concern, as today, only establishments carrying out more than 7.6 million euros of turnover. The tax would be equal to 1.5 of the value added for all companies carrying out more than 1 million of turnover. It then declines linearly for smaller institutions. Flat-rate reduction of EUR 500 would be granted to all enterprises to reduce the number of losers.

For members, the cost of their script makes possible entry into full force as early as January 1, 2010. "The economic situation and the difficulties of French companies argue in this sense", they believe. To reduce the budgetary impact, they propose to raise the rate of about 3 points (33 today) IS the time that the Government succeeds in introduce a carbon tax, which would bring around 5 billion. But it remains to be convinced on this point the Elysee and Matignon, who fear the psychological effect of such raising and that reserves the possibility of a spread of reform. Another sensitive issue: the Medef adamantly that reform be losers (read below), but what seems inevitable.