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Saturday October 25 was the second day of debates on the budget in the National Assembly, and already, several setbacks have been suffered by the government to reduce the deficit. Example: freezing the income tax scale. Such a measure would have made 200,000 additional households eligible and could have brought in just over two billion euros. But the amendment was overwhelmingly rejected by the deputies.
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The sky darkens over the National Assembly. An agreement on the budget seems to be distant. In the hemicycle, Amélie de Montchalin, the Minister of Public Accounts, faces Laurent Wauquiez, who refuses the freezing of the tax scale. “So I give you back my position. By definition, I am against all amendments“, she assures. “If increasing taxes made it possible to reduce the deficit, that would be known,” replies Wauquiez.
On arrival, first victory for the right. The freezing of the income tax scale is rejected. Taxes will be indexed to inflation, contrary to what the government wanted. “We have not proposed a massive tax increase, we have not created new taxes, we have not changed the rates and we are, as such, consistent“, says Amélie de Montchalin.
Consequence: 2 billion euros gone. They will not return to the state coffers. Earlier in the day, another victory for the right: total tax exemption for overtime, a measure also supported by Laurent Wauquiez: “In this budgetary battle, the Republican right has just won two victories. This budget is going to be what we’re going to do with it. You know our line. We want to oppose tax increases and we want us to be able, through this budget, to revalue work.“
With the proliferation of amendments, discussions have fallen behind schedule. The revenue side of the budget must be voted on on November 4.
