Roche & Cie

French Presidency 2017: What future for the wealth tax?

The French wealth tax will be an unavoidable subject of the presidential campaign. Each candidate in the race for the Elysée will have to position himself on this subject which tends to divide. Already, the winner of the primary of the right and center parties, François Fillon, promised to eliminate this tax created by François Mitterrand in 1982.

With the presidential election, the issue of its suppression is back on the agenda. Called the tax on large fortunes, it had already been abolished by Jacques Chirac, and then reinstated by Michel Rocard, prime minister by then, in 1988.

François Fillon

The first to have promised its suppression is the great winner of the primary of the right and center: François Fillon. It is one of the 15 flagship measures of the candidate. Aware of the unpopularity of this repeal, however, he wants to quickly implement its abolition in summer 2017. Moreover, he also intends to reverse the 75% tax on very high wages, introduced by François Hollande at the beginning Of its quinquennium.

Emmanuel Macron

The former Minister of Economy of François Hollande doubts, on the other hand, the usefulness of the tax . “Today the wealth tax poses a problem for those who would like to invest and help” economic development, he said at a symposium on growth organized by the Institut Montaigne and the McKinsey global institute .

However, Emmanuel Macron does not claim its suppression because he believes that the “context” is not favorable.

Marine Le Pen

The candidate of the Front National goes even further. Because she considers it unfair, Marine Le Pen wants to merge the property tax with the wealth tax to introduce a “progressive tax” on heritage.

However, the wealth tax fuels the state budget while the property tax finances the local authorities.

Benoit Hamon

The candidate of the PS in the presidential elections is favorable to the wealth tax because it considers it a tax more just than the VAT which according to him favors the rich. It wants to create a single and progressive tax that will include the ISF and the property tax.

 

Thus, the saga of the wealth tax in France is far from being over. And as the former socialist minister Michel Charasse reminds us, this tax on wealth remains very popular “among people who do not pay it” and who see it as a means “to take revenge on the rich.”