François Fillon yesterday presented a plan for additional savings of 12 billion euros in 2011 and 2012. Companies, wealthy investors, consumers … everyone will have to put their hands in the pocket. Details. François Fillon unveiled new savings measures for 2012 at a conference at Matignon August 24, 2011
Tax on soft drinks, suppression of the reduction of professional fees, VAT increase on theme parks, higher social package, hardening of potential loss carry … the anti-deficit plan presented yesterday by François Fillon has only one consistency: they are essentially raising taxes through the creation of new taxes, the increase of others, and the removal of tax loopholes. Total amount of the bill: € 12.2 billion, which will weigh slightly more heavily on households (6.1 million) on enterprises (5.3 billion).
Companies: 3.9 billion
Companies pay a large share of 12 billion euros of additional taxes. First, their income tax will increase by 2 billion, due to stricter supervision of deferred losses on profitable years later or earlier (device that reduces the amount of tax companies). The second major measure relates to exemptions from employer contributions on overtime. These exemptions are not challenged, but will be included in the calculation of load reductions on low wages. In other words, companies will pay more payroll taxes to the tune of 600 million euros in 2012. The social package – which carries out the employer levy on employee savings – will increase from 6 to 8%, which will cost 400 million euros.Also note: social contributions paid by employers in the energy sector will increase, taxes on polluting vehicles will increase business and 30% reduction on the taxable profit in the overseas companies will disappear.
Insurance and mutual insurance companies: 1.4 billion
The exemptions enjoyed by banking and insurance contribution to social solidarity societies (C3S) will disappear, which will bring 200 million euros for Social Security next year (the C3S finances the social system of self). Moreover, the taxes that weigh on complementary health (mutual insurance companies, pension funds) will be raised from 3.5 to 7% for contracts called leaders and 7 to 9% for others. The increase in the tax on complementary health, which must report 1.2 billion euros, a priori weight on the industry.Except that the mutuals have already warned that they could pass this cost on to their customers, by increasing contributions.
Rich: 2.6 billion
The most anticipated was the creation of a windfall tax on very high incomes. It must be said that the petition launched by 16 top managers and large fortunes of France to pay more taxes generated the buzz. Still, this tax is more cosmetic than profitable. It is set at 3% for income above 500,000 euros per unit. It should therefore cover only 10 000 richer and report only 200 million euros, according to Bercy. In contrast, households with multiple properties will put a strong hand to pocket the 10% reduction per year beyond the 5th year of holding a second home or a building plot is deleted. This will bring 2.4 billion euros.
Investors: $ 1.5 billion
The payroll taxes on capital income (interest on savings accounts, real estate capital gains, dividends, interest of PEL, PEA, products, life insurance, etc..) Will be removed from 12.3 to 13.5 %. Almost all the French have a livret A and 62% have life insurance. This means that the measure will pay big: 200 million in 2011 and 1.3 billion euros in 2012.
Consumers: 1.2 billion
These are taxes that may seem anecdotal, but that will weigh on the purchasing power of the French. On behalf of public health (or the name of rigor), taxes on tobacco and alcohol will be raised. Tobacco prices will suffer a first increase of 6% in October and a second by 6% in January 2012. Taxes on spirits – except for wine, rum and "regional production" – will be raised to 90 cents per liter.In addition, the government announced the creation of a specific tax of 19.6% on soft drinks. Water, fruit juice (no added sugar) and products containing sweeteners are not affected by this measure. This "soda tax" which should bring 120 million euros a year, is already generating controversy. ANIA (National Association of Food Industries) Justice "scandalous" and warned that the price of the can is expected to increase by an average of one euro cents. Finally, fans of theme parks like Disneyland may have to pay more to enter the VAT on tickets from 5.5% to 19.6%
Lambda Employees: 800 million
It's a bit unnoticed, but the CSG many employees will increase. The abatement of earned income for professional fees will increase from 3 to 2%.Specifically: the CSG will now be calculated on 98% rather than 97% of salary, which amounts to a slight increase in the CSG. In addition, the income paid by the safety under the parental leave will now also subject to the CSG. These cuts Notwithstanding the CSG should report to 800 million euros in 2012.
State: 1 billion
François Fillon yesterday called "extra effort" to reduce state spending. It amounted to an effort that one billion euros in 2012, without detailing the cost-saving measures. The Prime Minister has merely to recall the steps already taken – freeze state grants to communities, freezing expenditures, non-replacement of a staff of two to retirement, etc..
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