BUDGET 2023. Saturday, November 19, the Senate rejected the amendments of the left and the centrists concerning the taxation of superprofits.
[Mis à jour le 21 novembre 2022 à 09h35] Saturday evening, November 19, the Senate, dominated by the right-wing opposition, rejected an amendment from the left by 181 votes against 97, then another from the centrists by 181 votes against 152 concerning the taxation of superprofits. A measure which, if it had been passed, “would also overtax companies which have had nothing to do with the current situation” according to the Minister of Public Accounts, Gabriel Attal. The European Commission is calling for a “temporary solidarity contribution” from producers and distributors of gas, coal and oil, which is making significant profits after the price hike. It should reach 33% of the share of 2022 superprofits, in other words, profits that are more than 20% higher than the average for the years 2019, 2020 and 2021. Do you want to know the latest information to remember about the 2023 budget? Here is a summary.
While 49.3 was drawn Wednesday, October 19 by Prime Minister Elisabeth Borne: “I engage the responsibility of my government for the first part of the finance bill for 2023”, the executive however retained a hundred amendments. First, starting in 2023, the cap on tax credit for childcare will increase from 2,300 euros to 3,500 euros per dependent child. Then, the taxation of superdividends will not be on the program for this 2023 budget, a measure which appeared to be “deeply unfair” according to the Minister of the Economy Bruno Le Maire.
The amount of restaurant vouchers is also at stake. The government plans to increase the face value of restaurant vouchers from 11.84 euros to 13 euros, so as to encourage employers to increase their amount. Also, the majority retains the amendment aimed at removing a tax advantage enjoyed by private jets for fuel. The tax on masks will be extended at the reduced rate of 5.5%. Finally, the legalization of frying oil as a biofuel, and an energy safety net for communities that will have suffered a loss of gross savings of at least 25% in 2023 and whose increase in energy expenditure will be greater 60% were also retained by the government as part of the 2023 budget.
- October 3, 2022 : opening of the parliamentary session in the National Assembly
- October 10, 2022 : start of discussions on the PLF 2023 in the National Assembly
Will the Ma Prime Rénov’ scheme benefit from an upgrade in 2023? One thing is certain, the government plans to increase the budget allocated to this aid, from 2 billion euros in 2022 to 2.6 billion euros in the 2023 finance bill. As a reminder, Ma Prime Rénov’ is an aid for energy renovation offered by France Rénov’ and calculated according to your income and the ecological gain of the work. The renovation target of 80,000 thermal sieves for the government is far from being achieved because only 2,500 homes have changed energy performance in 2021, according to a report by the Court of Auditors. Enough to encourage the executive to invest in this sector and to offer more substantial support, in particular to the most modest households who most often live in poorly insulated and very energy-intensive housing.
For teachers, the salary will be increased. An increase which will be worth in particular at the beginning of his career. To implement this measure, 935 million euros will be released. The objective is clear: to achieve an average increase of 10% so that no teacher earns less than 2,000 euros net per month.
Also, since Thursday, September 1, the amount of scholarships allocated to students is revalued by 4% under the purchasing power law. All levels are concerned, from 0 to 7. This scholarship is awarded to students according to different criteria such as the studies. It is advisable to follow an initial training in a public or private educational establishment authorized to receive scholarships. Re ageyou must be under the age of 28 at the time of the 1D Scholarship Application at 1er September of the year of studies. This age limit can be extended depending on the duration of volunteering in the armed forces, civic service or international volunteering. Finally, the resources. For the 2022-2023 academic year, the income used is that received in 2020 (tax notice of 2021) and must not exceed certain resource ceilings set by the decree of July 18, 2022.
Finally, as of November 1, thefamily support allowance (ASF) will increase by 50%! In other words, it will amount to 184 euros per month and per child. The CAF family support allowance is intended for single-parent families. Must therefore live alone and reside in France. The child must be in your carein other words, you provide financial maintenance (food, clothing, etc.).
First of all, the government has decided to extend the tariff shield on energy prices. On the other hand, the contained increase will no longer be 4%, but 15% from January 2023 for gas, and February 2023 for electricity. This translates into an increase of 25 and 20 euros, each month, on the bill of individuals.
Also, to anticipate the combined increases in the price of gas and electricity, respectively of 15% in January and February 2023, the government was working on a new aid system to compensate for this increase. This has now been done with the creation of an exceptional energy voucher, which will be distributed before the end of 2022 to the 40% of the poorest households living in France. It will come in addition to the traditional energy check, paid in April 2023. Its amount? 100 to 200 euros according to very specific remuneration criteria.
For example, a single mother on Smic with a dependent child will receive 200 euros. On the other hand, a couple with 3,000 euros in income and two dependent children will benefit from a check for 100 euros. The cost of the operation for the coffers of the State is estimated at 1.8 billion euros according to the statements of the Minister of the Economy Bruno Le Maire. To find out your eligibility, you can also refer just below to the precise scale established by the executive according to your level of income:
- Check for 200 euros : 20% of the most modest households, income below 13,310 euros
- Check for 100 euros : households whose income is between 13,310 and 18,610 euros
First of all, the government will spread over two years the abolition of the contribution on the added value of companies (CVAE). A maneuver that should allow the State to save no less than 4 billion euros. On the employers’ side, the announcement is struggling to pass. The latter hoped for its pure and simple disappearance from 2023.
Then, to limit the impact of inflation, the income tax scale was reassessed in September 2022 by 5.4%. A measure included in the 2023 finance bill. To put it simply, if your salary has not increased this year, your tax should go down. This revaluation concerns all tranches. From 2023, if your household has an income of less than 10,777 euros, it will not be taxable on the income of 2022. Until then, the ceiling was set at 10,225 euros. Thanks to the indexation of the income tax scale to inflation, a single person whose monthly income is 1,322 euros would have had to pay 129 euros in taxes in 2022. Next year, she will not pay nothing.
Finally, concerning the property tax, it could increase significantly. It’s a new blow that has just fallen on the heads of the owners. After an average increase of 1.9% this year, the property tax should rise again in 2023. And for good reason, the cadastral rental values which serve as the basis for the calculation of this local tax will increase from 6% to 7% in 2023. As expected, these will now take inflation into account, which will automatically boost the rating. The definitive abandonment of the housing tax in 2023 and the 5 to 10% increase in the household waste collection tax (TEOM) in 77% of French communities could also explain the increase in property tax in certain municipalities. . The 2023 property tax notice could therefore have a rather bitter taste. In this delicate context, the government could decide to cap this revaluation of cadastral rental values at +3.5% in the 2023 budget.
On Friday, October 7, the government tabled two amendments aimed at recovering certain profits from the energy giants, without going so far as to introduce a tax on super profits.
The first amendment concerns the temporary solidarity contribution which will relate to the 2022-2023 financial year. The government wants it to apply to the results of companies that make at least 75% of their turnover in extraction, mining, oil refining or the manufacture of coke oven products. An amendment that only concerns oil, gas, coal producers, or refiners. A contribution that should bring 200 million euros to the State.
The second amendment to the 2023 finance bill (PLF) concerns the capping of the price of electricity production. The executive wishes to cap the price of electricity production at 180 euros per MWh. The objective is clear, to help businesses and communities that can no longer make ends meet with the announcement of the increase in energy prices. The executive should recover the difference between this new ceiling and the wholesale market price, so as to finance aid for businesses and communities. In total, between 5 and 7 billion euros should be collected.