Baptiste Morin, edited by Corentin Alloune / Photo credit: Magali Cohen / Hans Lucas / Hans Lucas via AFP 14:29 p.m., May 16, 2023

The President of the Republic stresses that the taxation of the incomes of the middle classes is too strong. He promises a decline for this category. But many questions remain unanswered on this tax cut, announced this Monday during an interview with the news of 20H of TF1.

Tax cuts, yes, but for when and for whom precisely? Many questions remain in the aftermath of Emmanuel Macron's announcement on TF1 concerning the taxation of the middle classes. The President of the Republic has asked the government to make proposals to concentrate 2 billion euros in tax cuts on categories of French people who are not rich enough to live well and too poor to be helped.

"I think it's not enough"

What do the people who are part of these middle classes think? In the streets of the capital, passers-by remain perplexed. "When it comes out of Macron's mouth, it's going to be a 20-bullet thing. It is useless. In fact, it's useless for him to lower taxes if he raises something else on the side," said a passerby.

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Another added: "I don't think it's enough. We should lower people's charges. As an independent trader, I find that I pay far too many charges." Others see this measure as good news: "I think it would be a good solution because I have children who are studying, so it will help. More purchasing power means maybe more leisure."

10 and 12 million households affected

The measure is still rather vague. No precise timetable for the entry into force of these tax cuts. Emmanuel Macron only promises that they will intervene when the budgetary trajectory allows, before 2027.

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What is certain is that the total amount of this reduction is estimated at EUR 2 billion. And what we also know is that this must benefit the middle classes. Emmanuel Macron said this in his interview with L'Opinion, published on Monday. These would be the French who earn between 1,500 and 2,500 euros per month which would therefore concern between 10 and 12 million households.

But how will this reduction be applied? A reduction in charges, less social contributions, therefore more net wages. Emmanuel Macron has already used this lever. That was in 2018. At the end of the day, from 20 to 75 euros more per month for private sector employees. Except that almost no one remembers it.

Two billion euros by 2027

For good reason, the executive had the bad idea to proceed with a fiscal gesture in two stages, which had diluted the effect of this decrease and this increase in purchasing power this time. It will therefore be necessary to operate more frankly. Especially since this drop is actually not shattering. The president promises 2 billion euros by 2027 while the reduction in expenses in 2018 amounted to 7 billion euros in just one year. This tax cut could therefore make "pschitt", as the former President of the Republic, Jacques Chirac, said.