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2h ago

France’s National Assembly Backs Narrower CSG Hike on Capital Income to Fund Long‑Term Care

The move secures €1.5 billion for long‑term care with a narrower tax that avoids hitting key savings vehicles.

Sébastien Lecornu à l'Assemblée le 4 décembre
Initiée par Jérôme Guedj, la hausse de la CSG sur les revenus du capital constitue l’un des principaux points de crispation sur le PLFSS.

Overview

  • The government’s amendment passed 177–84 in the National Assembly, with 92 abstentions that included 19 Les Républicains deputies.
  • Framed as the “contribution financière pour l’autonomie,” the measure raises the CSG on most capital income to 10.6% while keeping a 9.2% rate for rental income, real‑estate gains, life insurance, PEL and PEP.
  • The expected yield is about €1.5 billion earmarked for dependence financing, according to the government.
  • The government scrapped its plan to double medical copayments after saying it no longer fit next year’s projections, and it lifted the health insurance spending target to +2.5% from +2%.
  • Filed around 20:00, the late amendment enabled an in‑extremis compromise that advances the PLFSS after a broader left‑backed hike worth an estimated €2.8 billion was set aside.