Recovery of wealth tax, lower VAT, income tax for all: Prime minister Edouard Philippe has expressed Friday of reservations and criticisms on several ideas tax issues in the great debate.
The Prime minister reaffirmed on Europe 1 his preference for tax cuts and public spending.
Without closing the door, the head of the government highlighted two pitfalls: the need for a european compromise to reach to the VAT rates and the risk of the intermediaries, and not the consumer, to capture the tax cut.
“The VAT is a tax that requires a european regulation and so we need to make it by good intelligence, a good agreement with our european partners, this is not a no, but it is a constraint that we must have in mind”, he said.
“Lowering the VAT, it can be understood, but it has to be of benefit, to those who ask and not to intermediaries”, has also stressed Edouard Philippe, while the precedent of the decline of the VAT in the restoration, had little consequences for the consumer.
Asked about a removal of the VAT on products of first necessity, of the claims of the “yellow vests”, the Prime minister responded that there also”, it should be ensured with producers, distributors that the benefit is not for themselves but for the final consumer”. “I wish a lot of pleasure to ensure that,” he said.
To RESTORE The ISF
“I hear the call, the aspiration for tax justice, I shared it elsewhere”. But “the ISF such that it was presented more disadvantages than advantages”. The transformation of the ISF wealth tax on the estate (IFIS), “I think we’ve done well to do so. If you want to do to pay the rich, the right solution is not to make them go away. It is common sense”.
TAX ON INCOME FOR ALL
Nearly half of French households do not pay income tax. “But they pay CSG on the first euro they earn, they pay tax on the first euro they spend and so, in truth, every French person contributes to the financing of public services,” pointed out Edouard Philippe. As to the suggested hypothesis of a tax which is “symbolic” of a few euros, “there are plenty of people for whom 10 euros this is not at all symbolic,” pointed out Edouard Philippe.