The Constitutional Council will render its decision on the Finance law for 2020 at the end of the week. Abolition of the housing tax, tax domiciliation of managers, monitoring by the tax authorities on social networks … Overview of the subjects submitted to the Wise Men .
Last obstacle before promulgation. The Constitutional Council will render its decision on the Finance law for 2020 at the end of the week, adopted in the last reading in the Assembly on December 19. This year, the Wise Men are called upon to vote on a particularly large budget, with a record number of 280 articles, three times more than before the examination in Parliament.
Taxes: the adjustments made to the 2020 budget during the parliamentary review
If the text has been enriched with numerous parliamentary amendments, it is above all the disappearance of the housing tax by 2023 that crystallizes the criticisms. The LR senators and deputies, as well as the socialist deputies, all three seized the Constitutional Council on this question, and in particular on the compensation of revenues for local communities. The text, which plans to allocate all property tax revenue to the municipalities and to compensate the departments with a fraction of VAT, is contrary to the constitutional principle of free administration of local authorities, pleaded the Socialist deputies.
The autonomy of the communities in question
For their part, LR deputies seized the Wise Men on the issue of the financial autonomy of communities. They want Parliament to be able to “Annually verify the constitutional conditions of the free administration of local authorities. “ As for the LR senators, they stress that this article will generate a potential erosion of their tax revenue for the departments, especially since they will lose their power to set rates. If this reform had been applied to the departments since 2005, the shortfall for the departments would have been “4.4 billion euros in 2017”, encrypt the Republican senators.
This is not the only angry subject in this finance law. The Constitutional Council will have to position itself on the collection of information by the tax authorities on social networks, already restricted during the parliamentary examination. “The text targets an exponential number of contents and opens the way to a general and massive collection of data”, argue the LR senators. For the socialists, this article infringes the right to the protection of personal data. LR deputies consider that such a measure has no place in a finance bill, in other words that it is a “budget jumper”.
The right also points to the obligation for the directors of large French companies to be domiciled for tax purposes in France. LR deputies underline the inequality of treatment linked to the threshold of 250 million euros of turnover, when the senators denounce a “small retroactivity” because these new rules will apply to income received from January 2019 .
Among the other measures that will be scrutinized by the Wise Men, we can also cite the surtax on offices in Ile-de-France, the tax on plane tickets or the low indexation of social benefits.