Exceptional contribution for the wealthiest: details of tax reform
Guest on France 2’s morning show, Laurent Saint-Martin, Minister Delegate for the Budget and Public Accounts, gave details of the Finance Bill to be presented to the Council of Ministers next week. Here are the main points discussed:
A targeted and exceptional contribution
– 99.7% of French households will not be affected by this new tax.
– Only 0.3% of households, or around 65,000 out of the 20 million paying income tax, will be affected by this measure.
– By way of example, this contribution will apply to a childless household with an annual income of around 500,000 euros.
A temporary and legitimate measure
Laurent Saint-Martin justified this initiative by recalling:
“After years of protecting jobs, incomes and growth, it is legitimate to ask the wealthiest taxpayers to participate, on an exceptional and temporary basis, in this recovery effort.”
He reaffirmed the government’s commitment not to hit the middle classes or the most vulnerable households with an increase in compulsory deductions, stating:
– No general increase in income tax.
– No de-indexation of the income tax scale.
A surtax on large corporations
The Minister also mentioned an exceptional surtax for large corporations with profits in excess of one billion euros. In his view, this is a matter of collective responsibility:
A country without good finances will not grow tomorrow. This is a moment of truth and courage; we need everyone’s participation.
Adjusting pension indexation
Finally, Laurent Saint-Martin returned to the decision to postpone the indexation of retirement pensions to July 1.
In 2024, pensions were revalued by 5.3%, while inflation was only around 2%. In 2025, with inflation forecast at 1.8%, a smoothing operation will be carried out to adjust this revaluation dynamic.
A balance between support and budgetary rigor
Through these measures, the government is reaffirming its commitment to protecting the most vulnerable households, while maintaining a balanced budgetary trajectory, essential to guaranteeing sustainable growth.