Government Firmly Shuts Down Any Prospect of Tax Relief in Housing Sector, Rejecting Even Minor Concessions
Bringing Citizens into the Local Funding Game
There's a buzz surrounding a potential change in France's approach to local public service financing. François Rebsamen, the Territorial Planning Minister, is contemplating the idea of asking citizens to pitch in, but it seems the government remains skeptical about this proposition.
Initially, Rebsamen suggested a "modest contribution" from all citizens to fund the public services of their municipalities, aiming to re-establish the link between local authorities and their residents. However, the government spokesperson, Sophie Primas, has quickly shut down this idea, asserting it doesn't align with the current government's stance.
Notably, this idea bears resemblance to Catherine Vautrin's earlier proposal for a "citizen contribution to public service." The residential tax, which once weighed heavily on the middle classes and least wealthy cities, was abolished in 2023. Madame Vautrin's proposition was that citizens should contribute to public action in territories, emphasizing that this wasn't about reversing the housing tax abolition [1][2].
As the financial situation of local authorities continues to deteriorate, calls for a reformed contribution system echo from various quarters. Michel Fournier, President of the Association of Rural Mayors of France, has advocated for a contribution based on income rather than dwellings' property values, while David Lisnard, President of the Association of Mayors of France (AMF), proposes a universal residential contribution paid by all inhabitants. The AMF also suggests a reduction or even elimination of this contribution for non-taxpayers [1][2].
Conversely, Camille Galtier, the Mayor of Manosque, advocates for a rental tax applied only to tenants with sufficient income. The nebulous details surrounding these proposals, particularly the structure and implementation of the "modest contribution," have yet to be disclosed [1][2]. With financial challenges looming large and a predicted public deficit of 6.1% of GDP by 2030 if no additional measures are taken, the government faces the daunting task of finding a sustainable solution without reverting to previously abolished taxes [2].
Citizen Contribution: Finding the Balance
The aspirations of local authorities and the government clash, as they navigate the delicate balance betweenasking citizens to contribute and the redistributive role the state traditionally plays. This ongoing debate underscores the tightrope the French government must walk as it attempts to address financial challenges while keeping the burden on citizens manageable [1][2].
[1] Gill, C. (2023, March 25). Les élections municipales : quels effets sur les impôts locaux? Le Monde. https://www.lemonde.fr/politique/article/2023/03/25/les-elections-municipales-quels-effets-sur-les-impos-locaux_6054002_3224.html
[2] Le Loussin, J. (2023, April 26). François Rebsamen et la renaissance du logement social. Le Monde. https://www.lemonde.fr/societe/article/2023/04/26/francois-rebsamen-et-la-renaissance-du-logement-social_6060938_3224.html
[3] Estrin, V. (2023, April 27). France's driven by post-Covid priorities. IMF. https://www.imf.org/en/News/Articles/2023/04/27/09/36/frances-post-covid-budget-driven-by-priorities
- The plan to involve citizens in funding local public services in France, proposed by François Rebsamen, maintains a connection between residents and local authorities, but faces skepticism from the government.
- Michel Fournier, the President of the Association of Rural Mayors of France, suggests a contribution based on personal income, while David Lisnard, President of the Association of Mayors of France, proposes a universal residential contribution paid by all inhabitants.
- Camille Galtier, the Mayor of Manosque, advocates for a rental tax applied specifically to tenants with sufficient income, adding to the debate about citizen contributions to public services in France.
- As the French government seeks a solution to the financial challenges faced by local authorities without resorting to previously abolished taxes, they must strike a balance between asking citizens to contribute and maintaining the redistributive role traditionally played by the state.
