Housing tax: the end of a presidential promise?”/>
Housing tax: the end of a presidential promise?
While the National Assembly debates budgetary measures for 2025, several elected officials are pleading for the return of the housing tax on main residences, abolished under the presidency of Emmanuel Macron.
This proposal, supported by political figures from various backgrounds, is intended to be a rebalancing solution to the budget cuts imposed on local authorities, which must reduce their spending by more than five billion euros according to government objectives. This potential new tax charge could worry homeowners already engaged in repaying a property loan.
Borrowing rates noted on 10/30/2024
Restoring the fiscal autonomy of municipalities
For certain local actors, the abolition of the housing tax has led to a loss of financial autonomy, limiting their ability to finance local services. The president of the finance committee, Éric Coquerel, considers that this decision has profoundly affected the fiscal independence of the municipalities.
Left-wing figures, such as David Guiraud of La France Insoumise (LFI), propose a partial reinstatement of the tax, targeting the wealthiest households to reinject around eight billion euros into local budgets. For him, making the richest households contribute more would be a fair solution, particularly in a context of crisis.
Broader support on the right for a reinvented tax
The proposal to bring back the housing tax is not only defended by left-wing elected officials: it also finds a favorable response among certain right-wing mayors.
Jean-François Copé, of the Republicans (LR) and mayor of Meaux, underlines the importance of this tax for the link between residents and their municipality, affirming that communities are drowning under imposed expenses and lack the resources to absorb them.
David Lisnard, mayor of Cannes and member of the Les Républicains party, proposes a “universal residential tax” which would exclude the most modest households, a way of adapting the tax to correct previous defects.
A difficult return in the face of government reluctance
Despite growing calls for the restoration of the housing tax, the government, led by Michel Barnier, does not seem in favor of it. The Minister of the Budget, Laurent Saint-Martin, recalls that the elimination of this tax made it possible to restore purchasing power to householdsa benefit which he considers it would not be wise to deprive oneself of.
Jean-René Cazeneuve, deputy of Ensemble pour la République, even describes this tax asunfair since it did not take into account differences in income between households.
In response to this reluctance, some elected officials are considering alternatives. Nicolas Isnard, mayor of Manosque, and Bertrand Hauchecorne, mayor of Mareau-aux-Prés, propose more adjusted tax models, specifically targeting high-income tenants.
These ideas illustrate a desire to adapt local financing to meet budgetary needs without reintroducing an identical housing tax. Finally, the plurality of politicians in favor of its restoration seems to be a major asset in what will, perhaps, be its future legislative journey
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