The French Chamber approved the tax reform strongly desired by President Macron and Economy Minister Le Maire by a large majority, who presented it as a real "revolution". The text, despite the ferocious debates it has sparked (the left has accused the government of having given "a gift to the rich"), has not been modified with respect to the work released outside the commissions, and provides for a single tax of 30% on capital annuities instead of a much higher progressive tax.
The new measure, which will enter into force in 2018, will cost the state coffers 1,3 billion euros in tax cuts in 2018 and 1,9 billion in 2019. “With this vote, France is equipped with a simple and attractive tax system”Le Maire commented. The flat tax, which is divided into 12,8% capital tax and 17,2% social security contributions, will be applied to movable property, capital gains from financial investments (i plans d'épargne en actions, PEA) and on some life insurance contracts. "Work is thus more taxed than speculation", the opposition arose. "It's a blank check, a 2 billion euro gamble". The government estimates that it will be able to cut, already in 2018, 11 billion in taxes overall, or 0,6% of GDP, and to be able to cut one percentage point at the end of the mandate. The next step, costing 3 billion, is the reform of the house tax, which for 80% of those who pay it will even be abolished.
