France against the grain cuts its corporate tax – economy

In the midst of the third wave of Covid-19, France voted to reduce taxes on businesses. A decision against the grain as the IMF calls for an increase in the latter and many countries such as the United Kingdom and the United States are preparing to increase them.

Decline in corporate tax in France

It is an astonishing decision taken by the government and with difficulty passed in the National Assembly, the reduction of 10 billion euros in corporate tax. By deciding to lower taxes on companies, France is going against the line taken by certain major economic powers but also by the IMF which recommends taxing companies and the richest to get out of the economy more quickly. crisis.

Joe Biden announced on March 24 his intention to increase corporate tax (28%), to partly finance his pharaonic stimulus plan of 2.200 billion dollars. At that time, France was also planning to do the same. The Minister of the Economy and Finance, Bruno Le Maire then declared: “ If tomorrow (…) companies return to growth, have additional growth, and therefore that corporate tax revenues are increasing, would it not be effective , Would it not be fair to devote part of the increase in this corporate tax (…) to the repayment of the Covid debt? . In a few weeks, the rhetoric seems to have changed.

10 billion less revenue

So the government made it difficult vote for a corporate tax cut of 10 billion euros. A decision much criticized by the various oppositions who believe that the government made the wrong choice. The president of the socialist group of the National Assembly, Valérie Rabault, remarks that “ all other Western countries agree to debate the financing of the crisis, even Germany, even the United States “.

Political scientist Jérôme Fourquet gives the World an explanation that could justify such a decrease when almost everyone decides on the increase. ” I can’t imagine Emmanuel Macron increasing taxes ; he wants to show that the public power is there, at the bedside of the economy “He explains, adding that with this choice, Emmanuel Macron” put a cross on the electorate of the left “.

On the side of the Ministry of the Economy, the discourse remains almost curiously the same but the purpose has changed. Thus, Bercy recalls that companies ” are the ones that make the revival And that increasing the tax burden on them, even though France has one of the highest tax rates, would be counterproductive.