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Macron accedes to the request of the Medef

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15 billion euros in tax cuts: this is the promise made by Emmanuel Macron, during the conference presenting his presidential program. Half of this reduction will benefit households and half to businesses.

The president-candidate thus announces a significant tax relief for companies: the abolition of the CVAE (contribution on the added value of companies). This so-called “production” tax is due by companies and self-employed workers from 500,000 euros in turnover, and is calculated according to the added value produced by the company. It currently brings in 7 billion euros per year, after an initial halving in 2021.

The sequel after the ad

Emmanuel Macron accedes to a request from the Medef, repeated for ten years, and which called again on the occasion of the presidential elections, the abolition of 35 billion euros in production taxes.

Who will pay for industry in France?

In a note of June 2019, Philippe Martin, the president of the Economic Analysis Council (CAE), recommended in particular the abolition of the CVAE in ” an objective of simplification and reduction of distortions “. However, in the meantime, last year, the government already abolished production taxes amounting to 10 billion euros. Reducing corporate taxation once again, in particular by targeting the CVAE, is perhaps no longer as appropriate. Asked by “L’Obs”, Philippe Martin reacts hotly:

The economic challenge is to reduce taxes which have negative impacts on employment, investment and exports. More than the CVAE, we called above all to remove the C3S, this tax on turnover which reduces exports and increases imports. This is the best solution if we want to reduce our trade deficit [-84,7 milliards d’euros l’an dernier, et il devrait être plus important encore cette année, nous a annoncés le ministre Franck Riester, NDLR]. »Especially since the measure can be neutral by removing the subsidy for the reduction of charges on high salaries. This is not what was chosen. And removing the CVAE appears to be more of an accounting choice than an economic one. »

The economist nevertheless refutes the idea of ​​a “gift to companies”.

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