Bruno The Mayor has obtained gain of cause. And not a little. The minister of the Economy, of Finance, of the Stimulus, which called for months to find the margins of budgetary manoeuvre for reducing taxes of productions, announced Wednesday, July 15, a significant decrease. In the framework of the recovery plan should be detailed at the end of August, the government will provide $ 20 billion in reductions to these levies which weigh heavily on companies ‘ balance sheets before they even know if they have made profits. The decline will be 10 billion by 2021, and then again 10 billion more by 2022.

The minister had already announced that he aimed, in priority, the CVAE, the contribution on the added value of the companies, a component of the territorial economic contributions (CET), which had replaced the professional tax abolished by Nicolas Sarkozy. The only problem is that a good share of the revenue of the CVAE, which weighs on the companies that make more than 500,000 euros turnover with an increasing rate based on this turnover, abounds today the budget of the regions. The State will therefore have to compensate for the loss of income for the regions, except to trigger their lightning. Bruno The Mayor has committed to do so fully by another recipe ” dynamic “. Understand that increases with the growth. This could be, for example, a share of VAT.

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In a report, the economic analysis Council, an independent body responsible for advising the executive, had emphasized the harmfulness of the taxes in production, focusing on the social solidarity contribution of companies (C3S), a tax which weighs on the turnover of enterprises. But this tax, François Hollande had started to remove, don’t touch more than the very large companies. It recommended, then, in a second time, remove the CVAE, as it would constitute ” a major simplification of the taxation of companies, since they would no longer have specific declaration to pay the CVAE “, a statement which can be complex because of the numerous exemptions, rebates… ” another important advantage is that the removal of the CVAE, the more that a further reduction in the rate of tax on companies beyond those already planned by 2022, would support a large part of the companies, as well as those generating the profits that those in difficulty, or even the companies in expansion phase which, for example, are investing heavily but still make little profit. “

Critical regions and other communities

In 2019, the companies have paid some 14 billion euros of CVAE, according to the Council of economic analysis. But with the capping of the economic contribution region (THAT) existing, companies have reduced the invoice to $ 13 billion. The removal of the CVAE would also increase the tax base of the corporate income tax, which would bring in approximately $ 2.6 billion, according to the CAE. Thus, the State has largely means will also delete the C3S in 2022, in the envelope of 20 billion mentioned by Bruno Le Maire, if it so chooses, since it yields a little less than 4 billion euros per year.

The association of regions of France does not hide his hostility to a decrease of the CVAE, which would be decided by the State. The association of large cities of France, France urban, critical that the proposed deletion of the CVAE : “This tax is constitutive of the relationship of proximity between firms and their communities of implantation. Its dynamism is the result of the effectiveness of the local actions implemented in favour of economic development. By substituting a share of national income would be as a decision-loser-loser : communities are no longer encouraged to accommodate new facilities, the companies no longer legitimate to ask for the development of infrastructure and local public services “, arguing in a press release issued on 16 July.

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In his note, the CAE recommended replacing the CVAE by a share of VAT ” with the same distribution key as for the CVAE [staff of institutions for the two-thirds and the land to a third party], but calculated in a manner aggregated to the level of the communal or intercommunal and not company by company. With such a mode of distribution, the local authorities would not be directly interested in the results of companies [or as currently to is GOING to produced by businesses that are present on its territory], acknowledged by the authors, but a link with the economic activity would be maintained, to the extent that the arrival or departure of a company, or the fact that she hires or fires, could impact the product you actually received. “

” In the short term, priority must be given to the temporary spending, and resist the temptation ever-recurring tax cuts permanent non-financed “, had warned the governor of the Bank of France, François Villeroy de Galhau, in his annual letter to the president of the Republic. He has not been heard.

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