To a partial removal of the housing tax by 2020 ?

It was one of the campaign promises of the president of the Republic, the property tax should be reformed in the coming months. The idea : exempt 80% of taxpayers by 2020. Has the key, the government hopes to restore purchasing power to households, especially the poorest.
This is one of the campaign promises of the headlights of the new President of the Republic Emmanuel Macron : the reform of the housing tax. Last march, the candidate of Running announced publicly that it wished to exempt 80% of the households. Nearly four months after his election, what is it really ? Will he use his election promise ?


The minister of public Accounts, Gerald Darmanin, said on France info, 6 July, that the reform would take place : “The President’s promise will be kept.” The calendar will be conducted over three years, and will be put in place by bearings. The reform will be – with the one provided to the ISF recorded in the budget in preparation for 2018. If all goes well, the full deletion will be effective in 2020. Moreover, our colleagues from France info announced Monday, July 10, “that the abolition of the housing tax for 80% of the households and the reform of the wealth tax will come into force in 2018”.


A measure feared by the elected


The reform on the property tax – which will hold 80 % of taxpayers worried about some communities who fear to see their local budget decreased strongly. Das his general policy speech, delivered before the national assembly, on 4 July, the Prime Minister said : “I know this reform is expected by the taxpayers, but feared by elected officials. The housing tax is also necessary for the local budgets, it is unfair in its calculation and its evolution to the taxpayers.” This is why improving the system for the communities is also essential.


It is in this framework that will be held on 17 July, the national Conference of territories. The question will be raised, and the consultations should begin.


“Make the purchasing power of the immense majority of our fellow citizens”


The Prime Minister, Edouard Philippe, was intended to be reassuring to local authorities during his speech of 4 July. “In the matter of local finance, we will engage with the local communities discussions essential, because if everyone, of course, must contribute to the recovery effort of our public accounts, that should be done in dialogue and respect, as well as with the necessary predictability to all good management.” As a result of which, Edouard Philippe was leaning more explicitly on the reform of the housing tax proposed by the President of the Republic, during his electoral campaign. “The reform should contribute, by the end of the quinquennium, to make the purchasing power of the immense majority of our fellow citizens”, he said.


For a better understanding :
Homes that have a taxable income of less than 20.000 euros per year and a per unit tax will have to pay the housing tax. (40.000 euros per year for a couple). Or again : a person who receives 1.600 euros per month without children or a couple who receives less than € 5,000 per month will be exempt. For a married couple with a child, the limit of monthly income would be 4.166 euros. With 3 children, one arrives at 6.666 € per month.

Leave a Reply