Value added tax is from 500000 euros of turnover

Once is not custom, professional tax reform causes as much agitation right than left and should lead to an avalanche of amendments to the budget for 2010. Some of them will be defended, tomorrow, before the Board of Finance of the National Assembly, the other being presented the week next in public session. "We will completely rewrite the law," warns the UMP MP Marc Laffineur, who met yesterday, with Gilles Carrez, rapporteur of the budget, for the conditions of a compromised vote.

The challenge is not on the massive tax cut granted to businesses. The main grievance relates to the compensation provided for communities, who see disappear with the TP their main financial resource (22 billion euros), equivalent to half of local direct taxes. Elected officials, and in particular the mayors, fear the end of any link between companies and their territory.

"What interest our communities have to invest to allow companies." Mayors the France. "Tourist cities will be winning, because they were receiving little TP and will collect many tax." "Large metropolitan areas, with the reverse schema, are among the most penalized," explains Marc Laffineur.

Correct a "perverse effect".

While an Equalization Fund is expected to limit the gains of the first and pay a portion to the latter. But the economic dynamic, which is that politicians attract businesses on their territory, is upset: "Instead of building ports, mayors will build marinas!", summarizes Gilles Carrez, which proposes to correct this "perverse effect".

In agreement with the Government, he wished to redirect, the departments to the Commons, part of the new supplementary contribution sitting on value added. Would private 2 billion revenue departments perceive, in return, the product of the tax on the commercial surfaces and transfer rights. The Government seems to also agree that this additional contribution is paid directly to communities by companies, but "2 billion, this seems a little short", yesterday saw Jacques Pélissard, President of AMF. "Value added tax is from 500,000 euros of turnover." "It will penalize the rural world," said Mayor UMP of Lons-le-Saunier. Small towns, including the economic fabric is mainly composed of small companies, may collect nothing or very little of the 2 billion.

AMF but also the Acuf and ADCF, representing urban communities and the intercommunalités to own taxation, believe that the "escalation of rates on value-added (planned for the supplementary contribution) could have extremely perverse effects". Companies may be tempted to forth their activities to split their turnover as the new tax. Elected officials want safeguards.

Step of voting before 2010

Finally, the lowering of the ceiling for decrease of 3.5 to 3 of their value added businesses poses an ambiguity that mayors want to thrown. Namely if it is a new co-payments to communities or whether it is a new supported relief supported by the State.

The debate likely to be even more agitated among senators. To preserve the flexibility of the communities, Philippe Marini and Gérard Longuet require that each community may modulate the rate of the supplementary assessment (1.5 today). The "tax gift" promised business (4.3 billion in cruise regime) would be reduced in due proportion. "The companies will have to inject more money into the system, otherwise we will not achieve", defends Philippe Marini.

With the complexity of the case, some argue for a postponement of the reform. Gérard Larcher, President of the Senate, proposes that the senators are working for six additional months, in an ad hoc mission. The President of the Board of finance, Jean Arthuis, believes that the reform of local taxation will not be passed before 2010, only the branch enterprises being acceptable. "We find no solution in the short term." "Advance, it is the revision of the rental values, that will bring additional revenue", he explains.