Purchasing power: the amending budget in the Senate with the tax on "superprofits"

The Senate, with a right-wing majority, begins the first reading of the draft amending budget on Monday.

It includes the second part of measures to support purchasing power and will see the question of taxing the “superprofits” of large groups reappear.

This amending finance bill for 2022 opens up 44 billion euros in credits, including 9.7 to finance the 100% renationalization of EDF.

Continuation of the tariff shield on energy and the fuel discount at 30 cents per liter in September-October (then 10 in November-December), revaluation of the index point for civil servants are among the measures included in the text.

If the debates are expected in the Senate less electric than in the National Assembly, they will have to be carried out at the pace, because planned only over two days, night included.

The High Assembly will not escape the debate on the taxation of “superprofits”.

Slightly rejected by the deputies, it was revived by the enormous profits reaped by TotalEnergies, but also Engie and carriers such as CMA CGM.

TotalEnergies more than doubled its net profit in the second quarter to $5.7 billion, about the same amount in euros.

The government opposed to an exceptional levy

The idea of ​​an exceptional contribution in the form of a tax, as applied in the United Kingdom or in Italy, will be carried by the left but also by the centrist group.

Its president, Hervé Marseille, intends to make his “markers” heard, even if it means “diverging” with LR, the first component of the right-wing senatorial majority.

“We have a more social than budgetary vision,” he says.

His group will propose the establishment of an exceptional solidarity contribution on superprofits at 20%.

But even with the support of all the left, the supertax should not, unless surprise, be voted.

The Minister of the Economy, Bruno Le Maire, strongly opposed it, arguing that "a tax is not a response to the economic situation of our country".

The Minister Delegate for Trade, Olivia Grégoire, for her part postponed the question to the end of the year, “if we realize that companies have not taken their responsibilities towards the French”.

Another expected point of discussion, the abolition of the audiovisual license fee.

The left opposes it and the centrists demand that it be postponed.

Without questioning it, the general rapporteur for the budget, Jean-François Husson (LR), proposes to limit to December 31, 2024 the allocation of a fraction of the VAT product intended to ensure the financing of public broadcasting, the time to put in place "a real reform of the sector".

The compromise on fuel prices

The LR group will also return to the charge on overtime, wishing to perpetuate the increase to 7,500 euros in the tax exemption ceiling, voted by the National Assembly for 2022. The Chamber of Territories will finally be keen to push a little further the cursor of support measures for communities, also impacted by inflation, the general rapporteur wishing "a safety net".

In committee, the senators again adopted an “exceptional envelope of 40 million euros” for food banks.

And they replaced the exceptional back-to-school bonus of 100 euros, reserved for social minima, with an exceptional increase of 150 euros for beneficiaries of the activity bonus.

As this is a finance law, the amendments voted on in committee must be approved again in the Chamber.

Regarding the price of fuel, Jean-François Husson does not intend to go back on the compromise found by the government with the LR deputies.

“We are not going to add confusion to an agreement resulting from a showdown.

The Minister wished to be able to "preserve this compromise", specifying that with the discounts from distributors and oil companies, "we can have a price per liter of petrol or diesel at the start of the school year around 1.50 euro".

The Senate already voted on Friday evening at first reading, after having amended it, the “emergency” bill in support of purchasing power adopted in the Assembly.

Deputies and senators will meet Monday at the end of the afternoon in a joint joint committee (a body whose goal is to find a compromise between Assembly and Senate) to try to agree on a common version of this first part of measures.

The government is counting on a final adoption of the two texts no later than August 7, which would allow parliamentarians to go on vacation.