Michel Barnier, France's New Prime Minister, Announces Corporate Tax Hikes on Big Companies and Wealthiest Individuals
In a recent interview on France 2 television, Michel Barnier, France's new prime minister, revealed his plans to increase corporate tax on the largest companies in the country and on the wealthiest individuals. This move comes as France is facing a growing budget crisis, with tax income lower than expected and spending higher than planned.
Barnier's decision is crucial for France's credibility with financial markets and its European Union partners, as borrowing costs have surged. The increase in corporate tax will only affect companies with a turnover of more than 1 billion euros ($1.10 billion) per year. Additionally, he will propose a temporary income tax increase for households earning more than 500,000 euros ($551,450) annually, which could generate around 2 billion euros.
Furthermore, Barnier plans to delay the planned increase of pensions in line with inflation by six months, pushing it back to July 1 instead of January 1 next year. Despite facing opposition from various parties, including those within the government, Barnier remains steadfast in his decision to address the budget crisis responsibly.
Looking ahead, Barnier needs to finalize the 2025 draft budget in the coming days and submit it to lawmakers by mid-October at the latest. With the new government lacking a parliamentary majority, the approval of the budget may prove to be a challenging task.
In conclusion, Michel Barnier's decision to increase corporate tax and propose income tax hikes is aimed at stabilizing France's finances and regaining credibility with financial markets. This move could have significant implications for the country's economy and its citizens, as it seeks to address the growing budget crisis and ensure fiscal stability in the long run.