Tax rate of 90%, VAT of 33% for luxury… the revolutionary amendments of Rebellious France

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Deputies from Jean-Luc Mélenchon's party have presented numerous amendments to the 2018 finance bill. Ideas that could make more than one taxpayer jump, although they have little chance of being adopted.

Insoumise France tries to leave its mark – symbolically – during the debates on the 2018 finance bill. The deputies led by Jean-Luc Mélenchon presented several dozen amendments to the budget, with the aim in short of enforcing the defended fiscal program by the former presidential candidate. . Although they have almost no chance of being validated, these proposals, which especially attack the wealthiest, are in any case a cause for conversation… Anthology.

A 90% marginal tax bracket

In his program, Jean-Luc Mélenchon defended the idea of ​​a 100% tax bracket for very high incomes (compared to the current maximum of 45%). The amendment presented – which was rejected by the assembly's finance committee – sets a maximum marginal rate of 90%, beyond the 400,000 euros of income from the family quotient. Furthermore, another amendment seeks to apply this new income tax to expatriates of French nationality, who would have to pay the difference with the tax already paid abroad.

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33% VAT on luxury products

The plan to excessively tax the ostentatious assets of the deputies of La République en Marche seems very boring compared to what the Insoumis envisage. Ils souhaitent en effet faire grimper le taux de TVA à 33% sur les produits de luxe: “caviar, yachts, bijoux, lingots d'or, cosmétiques et parfums, oeuvres d'art, jets privés, voitures de luxe”, énumèrent- they. At the same time, the normal VAT rate would be reduced from 20 to 19.6% and the reduced rate to 10 or 5.5% would increase to 5% for essential products.

Eliminate the tax advantages of life insurance

Life insurance holders have already been harmed by the planned application of the one-off 30% flat-rate deduction (which will increase the taxation of large contracts), but France Insoumise plans to go much further by simply eliminating the benefits Taxes linked to life insurance, particularly tax reduction after 8 years of ownership. “Tax exemption schemes on life insurance (…) encourage non-productive financial investments that are useless for the country's activity,” they justify.

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>> Our service: Try our LIFE INSURANCE comparator

The tax advantage for employing one person at home divided by 10

Currently, the tax credit granted for employing a person in your home, equivalent to 50% of the sums made, is limited to 12,000 euros of expenses per year. The Insoumis want to reduce this limit to 1,200 euros. “In 2015, the average reduction was 625 euros. Reducing the maximum limit to 1,200 euros would allow maintaining the incentive effect for the middle classes (…) but avoiding the unexpected effect for the rich classes,” they justify.

Taxation of up to 100% for very important inheritances

The aim is to establish a “maximum inheritance” by taxing at 100% the part of the net assets that exceeds 33 million euros (after possible reductions), while the maximum rate is currently 45%. “Only the richest 0.01% owned assets worth more than 33 million euros. (…) Without inheritance limitations, gigantic fortunes are transmitted from generation to generation and nothing prevents the worsening of inequalities,” the authors emphasize.

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A sales tax on luxury real estate

The idea would be to overload transactions of more than 1 million euros. This new tax would start at 1% of the sale price and would increase to 10% when the operation exceeds 10 million euros. The sums thus recovered would be used for the renovation of unhealthy homes.

Eliminate Pinel's rental investment system

The “Pinel” allows you to obtain a tax reduction equivalent to 12 to 21% of the sums incurred in the case of investment in certain rental properties. The deputies of France Insoumise want to eliminate this system that “exaggeratedly promotes “all owners” and “all private owners” with enormous tax advantages for the richest.”

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>> Our service: Discover all the new housing and tax exemption programs in Pinel currently for sale in France

>> In video – Pinel placement yes, but be careful with the dangers

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