How to mobilize Covid savings, these some 200 billion euros, all products combined, that the French set aside in 2020 due to the pandemic, containments, state aid and the absence of want to spend? This is the question the government has been asking itself for months: it hopes that this savings will participate in the growth of France in 2021, by relaunching activity. But the French still have to decide to take out the checkbook.
Direct savings to the youngest?
The idea that seems to be gaining ground in the minds of the executive and parliamentarians is, perhaps, the most logical: to allow those who need it most, therefore the youngest households, full projects and expenses, to benefit from the savings of previous generations. In short: encourage parents and grandparents to make donations.
But to do this, this donation must be taxed as little as possible: however, in France, donations remain highly taxed and limited to certain amounts over time. The government and the Parliament are therefore thinking of reducing these pre-existing arrangements, temporarily, so that households that can can offer sums to the youngest without risking paying too much tax.
Large donations or small donations? That is the question
There are two opposing options, however, behind the scenes of power. On the one hand, the idea that comes from the deputies: an outright increase in the exemption ceilings for intra-family donations. Today, and every 15 years, donations make it possible to give goods and money for 100,000 euros per parent to each of the children. An increase in this ceiling or a decrease in the time limit could facilitate the transfer of assets.
But, according to The echoes, Bruno Le Maire, Minister of the Economy, would have another idea: not target donations of large amounts but… small donations, of a few thousand euros. The government could, to do this, create an exceptional and temporary tax system.
An option that has its advantage: it would keep the majority of the parents’ assets as they are, and therefore the potential inheritance taxes in the years to come. But the amounts targeted may not be sufficient for the recovery, because too low for large projects. According to The echoes, some believe that it would simply be a gift to the richest households, those who can offer for no reason a few tens of thousands of euros to their children.