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France Debates Future of High-Earner Tax

The French government is debating the future of the CDHR tax on high earners, weighing its potential to reduce the deficit against initial plans for a limited lifespan.

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French

France

EconomyLabour MarketFranceGovernmentFrench PoliticsBudgetTax Policy

National AssemblySenateModemLes DémocratesRassemblement National

Laurent Saint-MartinJean-Paul MatteïAlain JuppéCharles De Courson

What is the Minister of Budget's stance on the CDHR's future?: The Minister of Budget, Laurent Saint-Martin, expressed support for the CDHR's permanency as long as it contributes to reducing the public deficit. He referenced the CRDS tax as a precedent for a temporary tax becoming permanent.
What is the government's overall approach to balancing the budget?: The government's overall budget plan involves a two-thirds reduction in public spending and a one-third contribution from exceptional taxes. The minister criticized an opposition budget proposal as including excessive tax increases.
What arguments have been made in favor of making the CDHR a permanent tax?: The CDHR is a tax on high-income earners, initially proposed as a temporary measure. However, the Modem party and others have argued for its permanency for reasons of fiscal justice and its potential to address the public debt.
What happened to the revenue portion of the 2025 finance bill in the National Assembly?: The National Assembly rejected the revenue portion of the 2025 finance bill, sending it back to the Senate. Amendments proposed by opposition groups, including the potential for CDHR permanency, could still be revived during further discussions.
What is the current status of the CDHR (contribution différentielle sur les hauts revenus) in the French budget?: The French government is considering making the CDHR (contribution différentielle sur les hauts revenus) permanent, as suggested by the left and MoDem parties. The initial proposal was for a two-year limit, but the minister of budget is open to keeping it as long as it helps reduce the public deficit.

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