In May, the president made a promise that still works, pledging to cut household taxes by $2 billion. Emmanuel Macron then “asked the government to (him) make proposals so that they (the two billion euros, editor’s note) focus on the middle classes.” On the other hand, he had not set a precise timetable for the application of this measure except “by the end of the five-year term”. In an interview with Le Figaro, Bruno Le Maire sets himself a more specific objective to implement this tax reduction. “We will do it as soon as possible, if possible from the 2025 budget,” said the Minister of the Economy.
The possible avenues for targeting the middle classes revolve around a reduction in income tax or a reduction in contributions on wages. Beyond these announcements, the fact remains that the envelope of this measure is quite tight and the target audience is large. An envelope of 2 billion euros per year for 40% of employees (those who earn between 1,500 and 2,500 euros) would amount, for example, to a gain of around 15 euros per month and per person, according to calculations by economists from the OFCE.
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To fight against food inflation which weighs precisely on the portfolio of households. Bruno Le Maire also confirms that a bill will be presented in early October to bring forward the date of trade negotiations – where manufacturers and distributors set prices – so that they take place by the end of 2023 at place of spring 2024 as the rule would like. The Minister also asks parliamentarians to work on a way to relax the rules around trade negotiations so that the reductions in the price of raw materials can be reflected as quickly as possible on the shelves. A decision that could be a double-edged sword, because the increases in raw materials would also have an impact just as quickly.
He also said that arrangements would be made so that quantity drops in products are clearly marked on the shelves. “These bottles of orange juice which contained 1L and which now contain 900ml without clearly informing the customer, that’s called stealing!” “All necessary regulatory and legislative provisions will be taken to ensure that content changes are displayed on the shelves in a clear and legible manner for several months.”
In this same interview, the Minister of Finance also announced a measure to help food banks following the appeal launched by the president of Restos du Coeur on Sunday. “In 2023, we decided to raise the amount of donations to food banks from 500 to 1000 euros, which are exempt from 75% income tax. This ceiling will be maintained in 2024”, he specifies.
