The deputies rejected in the Finance Committee, this Saturday, October 19, the first part of the 2025 budget devoted to State revenue, after having largely rewritten it by adopting nearly 200 amendments profoundly modifying the financial balance of the text. A quarter of the 41 articles examined were deleted or rejected, including some emblematic ones such as electricity tax increases or the freezing of local authority resources. Without consequence at this stage, since the debate in the hemicycle next week will start from the initial text.
The left voted for the text, all the other groups, the RN and its allies, the presidential camp and the centrists of Liot voting against due to an excessive increase in the tax burden compared to the initial text, of 60 billion d euros according to Eric Coquerel, the president of the commission.
The deputies notably increased taxation on super profits and super dividends, strengthened the tax on share buybacks, doubled the exceptional contribution of large maritime transport companies or reduced the scope of the Research Tax Credit. On the other hand, they notably rejected the increase in the automobile penalty proposed by the government, and the possibility given to the executive to increase taxes on electricity beyond their pre-Covid level.
“Tax Carnival”
In his explanation of vote, the RN deputy Jean-Philippe Tanguy declared that he could not vote for the budget, while it is conceived as a “whole”, with the revenue part and the expenditure part, and therefore “we cannot not commit to a ‘for’ vote at this time.” On behalf of the Ensemble pour la République group, David Amiel denounced a “fiscal carnival”, a “fiscal butchery” which would “immediately tip the French economy into recession and crisis”, and ultimately a “Frankenstein budget” without overall coherence.
Since the start of the commission’s work on Wednesday, the examination of the text has given rise to alliances of varying geometry, and the “common base” supporting the government’s action has often appeared divided. The deputies will debate the government’s bill from Monday in the hemicycle for a week. Unless a motion to reject is adopted on Monday, or the government draws out article 49.3 during the debates.