It was a hair’s breadth away. The tax on the “superprofits” of large multinationals was narrowly rejected on July 23 by the National Assembly despite protests from the left and the RN. The Senate, which is examining the second part of the purchasing power support measures on Monday and Tuesday, is not immune to this explosive debate, even if it rejected the principle on Monday evening. The idea of an exceptional tax, carried by left-wing and centrist senators, ignited the exchanges within the Luxembourg Palace. Did you follow anything about this? We take stock.
What are we talking about ?
Galloping inflation in Europe does not have the same impact on everyone. As consumers see the price of their bills explode, some companies are making record profits, particularly in the energy or transportation sectors. Taking advantage of the rise in oil and gas prices that followed Russia’s invasion of Ukraine, TotalEnergies notably more than doubled its net profit in the second quarter: 5.7 billion dollars, against 2.2 billion the previous year. In the first half, the 18.8 billion in net profits represent almost triple the same period in 2021. Massive profits which have fueled the debate in France on the advisability of taxing these large groups, as chosen by the Italy, Spain or the United Kingdom.
What did the opposition deputies propose?
During the passage of the text on purchasing power in the Assembly, several opposition deputies proposed amendments to introduce an “exceptional tax [de 25 % à 50 %] on the superprofits” of the various companies, oil and gas, maritime transport or motorway concessionaires.
“We are in the spirit of the exceptional contribution on war profits, in 1916, which targeted companies that had taken advantage of the First World War to make significant profits, particularly in armaments. The idea is that during crisis, companies that enrich themselves in an exceptional way must redistribute part of this money”, assures Manon Aubry, rebellious MEP, specialist in tax justice.
Why does the executive not want it?
“We must not give in to the Pavlovian reflex of the tax. The approach we are proposing is fairer and more effective,” insisted Bruno Le Maire. Monday in the Senate. The Minister of the Economy, like the whole government, has said and repeated that he would oppose any tax increase, promise of Emmanuel Macron during the campaign. The executive prefers instead to bet on “corporate responsibility”, welcoming the decision of TotalEnergies with a discount at the pump of 20 euro cents, or around 500 million euros.
“This discount yields more than a possible supertax. And it’s money that goes directly into the pockets of the French, “defends François Patriat, the boss of the Renaissance senators, what the supporters of a supertax refute. “Within the presidential majority, taxes and taxes, we remove them, we do not add them! Total already pays taxes on their profits. These profits will also allow it to invest massively in low-carbon energies, ”adds the elected representative of Côte-d’Or.
The government also welcomed Engie’s decision to grant an average discount of 100 euros in November for its most modest customers and called on other companies to follow suit, particularly in the banking sector.
A new chance to pass?
The tax on “superprofits” was defended by the left in the Senate, but also by centrist elected officials. “We have agreed to lower corporate tax, we are just thinking of levying an exceptional contribution on companies which see their profits jump during a new crisis”, launched centrist senator Sylvie Vermeillet on Monday. But even with the support of the whole left, the supertax did not pass. The presidential group and the right-wing senatorial majority opposed it. “A falsely effective and falsely fair measure”, thus swept away Bruno Retailleau, the boss of the LR group. An end clap?
“What was considered unimaginable a few months ago has finally been implemented in several European countries, and even the European Commission has opened up this possibility of a tax on superprofits in its recommendations to States”, replies Manon Aubry . “This idea has therefore had an interesting turn and will be one of the battles for the months to come, in France and on a European scale”. Eric Coquerel, the LFI president of the Finance Committee at the Assembly, indicates this Monday in The echoes the launch of a flash mission on the taxation of profits. In addition, the Minister Delegate in charge of SMEs Olivia Grégoire assured Friday that this question of a taxation of superprofits would be studied again during the study of the future budget at the end of the year, if “companies have not taken their responsibilities”.