Budget: The Minister of the Economy warns against "tax witchcraft"

Since the start of the examination of the 2026 budget bill in the National Assembly, the deputies have adopted a series of measures aimed in particular at taxing companies more.

Arguing once again for "a compromise budget" that reflects "a balance between fiscal responsibility and political stability", Roland Lescure nevertheless warned: "Not everything is acceptable".

"This week, measures were passed, perhaps linked to the approach of Halloween, that are completely ineffective!" he noted, citing an "unenforceable" tax on multinational profits. He sees it as "fiscal sorcery."

"In theory, we can decide to export our deficit problem and want to make the whole world pay. But in practice, it's simply not possible. (...) To those who say 'we're going to have 30 billion euros of magic money,' I reply: 'We'll have 30 billion euros of magic trouble,'" he added.

Regarding the Dutreil pact, a scheme to reduce taxation during family transfers of businesses, the Minister of the Economy called for not "selling off French companies".

"The Dutreil pact is an essential tool for preserving French-style family capitalism. It is useful. But can we correct, here or there, the excesses that have been pointed out by some? Let's look at it! On the other hand, if the result of what will be voted on in the Assembly leads to selling off French companies at bargain prices, we would be shooting ourselves in the foot," he declared.

This tax loophole, which will be debated in the National Assembly, is criticized in particular by the Socialist Party (PS), which sees it as a way to reduce inheritance taxes. It would have generated a loss of €5,5 billion in tax revenue in 2024, according to Le Monde, which consulted a summary of a report by the Court of Auditors to be published in the coming weeks.

According to calculations by Public Accounts Minister Amélie de Montchalin, the measures passed so far raise the rate of mandatory levies to 45,1% of gross domestic product (GDP), "more than in 2013 when it was 44,8%." This does not include the tax on unproductive wealth passed Friday evening, the amount of which has not yet been determined.