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Amélie de Montchalin: No New Taxes to Achieve €40 Billion Savings
Once more, Amélie de Montchalin, the Minister of Public Accounts, has made it crystal clear that she has no intention of dreaming up fresh taxes to rake in the €40 billion in savings the government aims to squirrel away by 2026. Instead, she's all about whacking down public spending.
In an interview with Télématin on April 30, the Minister spilled the beans, along with François Bayrou, the Prime Minister, and Eric Lombard, the Minister of the Economy. The trio affirmed that the government is determined not to burden the middle classes with increased taxes. With taxes already chomping a hefty 51% of the nation's GDP, things can't get any tougher, Amélie declared.
No More Housing Tax Reversals
Backtracking on the abolition of the housing tax? A big fat no, Amélie promised.
Discussions with local authorities will kick off on May 6. These authorities are keen on predictability and fewer regulatory headaches, Amélie shared.
The Path to €40 Billion
While the government is chipper about hitting the €40 billion savings target by 2026, it's not all about slapping on new taxes. Instead, it's about trimming the fat, as well as scrounging up extra revenue through growth. Strategies under consideration include:
- Cutting back on expenses: Economy Minister Eric Lombard stressed that with a staggering 57% of GDP already in public spending, France can still slash costs without opting for austerity.
- Scrapping tax breaks for retirees: The government might see off tax perks for senior citizens, potentially liberating around €4.5 billion annually.
- A permanent wealth tax: The government's looking at making a one-off wealth tax a permanent fixture to level the financial field and boost revenue from high-earners.
- Consultations and referendums: Prime Minister François Bayrou proposed holding a referendum on the deficit reduction plan, involving public input on where to slash expenses or boost revenue, fostering greater consensus and engagement.
So, there you have it – no new taxes, just some smart spending and raised revenue to reach the €40 billion mark by 2026. Not a bad deal, eh?
Amélie de Montchalin reaffirmed there will be no new taxes to achieve the €40 billion savings target by 2026, instead focusing on reducing public spending. In an interview, she promised no more reversals on the abolition of the housing tax. Discussions with local authorities will commence on May 6, focusing on predictability and fewer regulations.
The government's strategy to reach the €40 billion includes trimming expenses, scrapping tax breaks for retirees, making a permanent wealth tax, and holding referendums for public input on expense reduction and revenue increase. Economy Minister Eric Lombard emphasized that France can still cut costs without austerity, while Prime Minister François Bayrou proposed a referendum to foster consensus and engagement. Overall, the path to the €40 billion target involves smart spending and increased revenue through growth.
