The NFP's proposals for the return of the ISF: a green and stricter reform

As part of her campaign for Matignon, Lucie Castets, candidate for the New Popular Front (NFP), unveiled an ambitious plan to reintroduce the wealth solidarity tax (ISF). This reform, which combines tax imposition and environmental impact, aims to generate 150 billion euros by 2027 to finance the party's program and support the ecological transition.

A reinvented ISF with an ecological component

The NFP project proposes to transform the ISF into a “green ISF”, integrating a significant ecological dimension. According to the proposals, the tax would be adjusted according to the carbon and climate footprint of the assets. Taxpayers whose activities are more environmentally friendly would benefit from tax reductions, while those whose activities have a negative ecological impact could see their taxes increase by up to 25%.

Modification of tax scales

The ISF tax scales would be substantially modified. Although the tax threshold remains at 800 euros, the tax rates for the highest assets would be increased:

• Assets exceeding 10 million euros would be taxed at 3%, compared to 1,5% previously.
• Assets between 5 million and 10 million euros would be subject to a rate of 2%, compared to 1,25% previously.

Declared assets would also be affected by the reform:

• Shares held in companies where the owner carries out his main activity would see their exemption reduced from three quarters to half of their value.
• The duration of collective share retention commitments would be extended from two to six years.

Exclusion of professional property

Contrary to some initial expectations, the reform would exclude the taxation of professional assets. Thus, shares held by company directors, currently exempt from ISF, would not be affected by these new measures.

Reactions and controversies

The NFP proposals provoke various reactions:

patrick martin, president of Medef, criticizes the calculation of the NFP, which anticipates an annual return of 15 billion euros for this new ISF, compared to 5 billion for the old version. He fears an exodus of movable wealth, which could penalize entrepreneurs and SMEs.

Mabrouk Sassi, a tax lawyer, expresses reservations that the reform could affect more upper-middle-class professions, such as doctors, rather than the targeted ultra-rich.

Conclusion

The proposal for the reintroduction of the ISF by the New Popular Front, with its ecological component, represents a bold attempt to combine fiscal justice and environmental objectives. However, its adoption and its real effects still require in-depth debate and validation through legislative and judicial institutions.