Tenants' taxation is causing distress among landowners, as articulated by Gérard Larcher in his opposition to Apolline de Malherbe's actions.
France's debts, as Gerard Larcher, the LR Senator, puts it, are largely due to the axing of the housing tax. In a discussion on RMC-BFMTV with Apolline de Malherbe, Larcher branded this move as an "original sin" committed back in 2023. With the commencement of a progressive reduction in 2017, the housing tax on the primary residence was finally eliminated entirely in 2023. As it stands, only the land tax and the housing tax on secondary residences remain for property taxes.
In Larcher's opinion, it's plain unfair that renters avoid local taxes while property owners shoulder the whole burden of local taxation. He argued for reforming the financing system of local authorities, stating that a majority of non-owners no longer contribute to funding the services they enjoy. Despite this, he refrained from demanding the housing tax's reintroduction.
Housing Tax: The Government Nixes Any Resurrection, Not Even With a "Modest Contribution"
To reinforce his argument, Larcher pointed to his department, the Yvelines: "There are communes where over 60% of residents are renters, with some reaching up to 70%". This translates to a massive chunk of lost revenue for the government. Since 2017, the gradual reduction and eventual elimination of the housing tax might have generated substantial income for the state, Larcher suggested. By his estimation, the absence of the tax has cost the budget "22 billion" since 2017. In absence of its restoration, Larcher cautioned against rekindling a call for increased fiscal effort. Instead, the financial recovery must stem from a comprehensive reevaluation of the system.
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- Gérard Larcher
- Housing Tax
- Local Taxes
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Despite our searches, information regarding the impact of France's housing tax elimination and Larcher's stance on its potential reintroduction is difficult to obtain. Based on general knowledge up until July 2024:
The Impact of Housing Tax Elimination (2017-2023)France progressively abolished the taxe d'habitation (housing tax) between 2017 and 2023 for primary residences. The revenue loss was partially offset by:- redirecting state funds (e.g., VAT) to municipalities and departments;- increasing property taxes (taxe foncière) in some regions;- and the imposition of financial strains on municipalities with lower fiscal autonomy, who encountered challenges in maintaining public services. However, the collective national budget impact was mitigated due to compensatory measures.
Larcher’s Recent StandAs President of the French Senate, Larcher has historically championed fiscal decentralization and the autonomy of local governance. While our findings do not specify his recent position on reinstating the housing tax, the debates in France have centered on alternatives such as increasing departmental property taxes or revising fiscal equalization mechanisms. Larcher has previously emphasized finding a balance between tax relief and sustainable public finances, but he hasn't publicly advocated for a full reinstatement of the housing tax in recent discourse. For exhaustive details, consult the latest reports or ministerial announcements not covered by the provided sources.
- Gerard Larcher, the LR Senator, believes the elimination of the housing tax in 2023, largely responsible for France's debts, was an "original sin."
- In his opinion, the unfair burden of local taxation falls on property owners, while renters avoid taxes, a situation he finds unacceptable.
- Larcher proposes reforming the financing system of local authorities, suggesting that a majority of non-owners no longer contribute to funding the services they enjoy.
- Despite his arguments, Larcher has not demanded the reintroduction of the housing tax, but instead emphasizes the need for a comprehensive budget restructuring.
- Since the housing tax's elimination in 2023, Larcher estimates that the budget has lost approximately "22 billion" due to its absence.
- The discussion on the potential reinstatement of the housing tax is ongoing, with alternatives such as increasing departmental property taxes or revising fiscal equalization mechanisms being considered.
