Mr. Smith Goes to Washington

March 2023

WIKIPEDIA
“Mr. Smith Goes to Washington is a 1939 American political comedy-drama film directed by Frank Capra, starring Jean Arthur and James Stewart, and featuring Claude Rains and Edward Arnold. The film is about a newly appointed United States Senator who fights against a corrupt political system.”

As a French equivalent, I would choose Le Président, a 1961 political thriller directed by Henri Verneuil and based on Georges Simenon’s novel of the same title, though with an altered ending. It tells the story of a French prime minister (Jean Gabin), who has toiled all his life for the national good. He is betrayed twice by an opportunistic younger politician (Bernard Blier) but gets his revenge in the end.

I have been following what is happening in French and American politics. It made me think of these movies, which, by contrast with what is going on now, are idealistic and uplifting rather than depicting what I think is the reality of politics around the world. I doubt that any real political system has ever been as good as what these movies show. But the French movie could be considered a kind of biopic of Georges Clemenceau:

WIKIPEDIA
“Georges Benjamin Clemenceau (28 September 1841 – 24 November 1929) was a French statesman who served as prime minister of France from 1906 to 1909 and again from 1917 until 1920. A key figure of the Independent Radicals, he was a strong advocate of separation of church and state, … as well as opposition to colonization.”

Both movies, in their way, address corruption, greed and self-interest. They also reflect a belief that good wins in the end because ethics transcends opposition along party lines. Even so, the reality was murkier. But the public had expectations of good governance, ethical behavior and common grounds when it came to what the country stood for.

Sadly, I find that in the USA and France, the public today has a very low opinion of elected officials and others who work in government, and even of law enforcement. So it is good to be reminded that there was a time when they were held to a higher standard: when the media revealed objectionable behavior, they would resign, drop out of the race, apologize and so on, even for wrongdoing that was not illegal. It would be nice if another Mr. Smith could go to Washington someday.

In watching American and French political life, I see a resemblance that few people mention. In the past several decades, it was rare for debates, emotional diatribes and the like to take place in the Chambre des Députés, the French equivalent of the US House of Representatives. But now that President Emmanuel Macron’s party lacks a majority, the opposition parties use such tactics to delay votes, hearings and other action, which infuriates the members of the government. All the parties involved, as well as the executive branch, indulge in surrealistic behavior, losing it at one point or another, leading to chaos and suspensions – in other words, pretty much what happens in the US House.

Mr. Smith Goes to Washington shows people having passionate arguments while staying civil and polite. The contrast between then and now is striking. Several times while watching debates in both countries I have made this connection. The scene I love the most of Le Président, which I have seen several times appearing on Facebook and I have put it on my page is,
https://www.dailymotion.com/video/xx87cb 
He calls by name all the conservative representatives (les députés) and states their close ties to major international trusts, conglomerates, or banks. He also talks about how expensive a political campaign is and how better is the return on investment when financing the political campaign of un député versus bribing local officials in the colonies.

The USA is used to these situations and the House will not get much legislative work done until the presidential election next year. France entered unchartered territory when the newly elected president did not win a solid majority in the Chambre des Députés. It is impossible to predict what will happen during President Macron’s second (and last) term.

STRIKES AND DEMONSTRATIONS IN FRENCH CITIES 
American love to joke about, complain and ridicule France on the frequency of strikes and demonstrations, especially in Paris. The chaotic debate about reforming the public retirement system is one of the driving forces behind the current strikes and demonstrations. There have been lengthy debates on TV and opinions of all kinds from across the political spectrum about the strikes and marches.

One thing I have noticed is that, contrary to many protests in recent years, there has been hardly any violence at the end of these latest demonstrations, even the massive ones. I can see that the police are stationed very differently than they used to be around the demonstration routes. Few people have commented about this and the reason for the difference. But those who do are unanimous in saying that Mr. Laurent Nuñez, who became the Paris préfet on July 20th, 2022, is responsible for this success.

A NEW MISSION FOR THE INPI: REGISTRATION OF BUSINESSES
On January 16th, 2004, I was proud of myself when I walked out of the Institut National de la Propriété Intellectuelle (INPI) in the 8th arrondissement after registering the trademark “A Survival Kit for Paris.” It was just the brand name without a logo or graphics. The name said exactly what I wanted my business to be, and it was mine. It stayed legally dormant for over 10 years: I only put it on my business cards and letterhead until I created a SARL called A Survival Kit for Paris in May 2016. The protection that comes with the registration lasts 10 years, so mine will run out in 2025.

For some reason, the French government has added business registration and modification to the INPI’s responsibilities. On January 1st, 2021, an office was set up in the INPI to manage the creation and alteration of businesses. On September 16th, 2021, this office became the national business registry. Now, since January 1st, 2023, all online registration of businesses is done through the website pages of that office (see the INPI link at the end of this section). This applies to registration of all corporations, whatever the type or size, along with solely owned craft and merchant businesses (artisan – commerçant). However, consultant-type businesses (profession libérale) still go through the URSSAF procedure. This classification was created under Louis XIV and has remained essentially unchanged ever since. It is one of the fundamental business classifications in France.

The new INPI registration procedure is advertised as being easier than before. But when assisting a client with it, I found that every other issue was incomprehensible to an American who was truly fluent in French. So take the advertising with a large grain of salt!

I am sure this topic will have a sequel. Although the vast majority of non-EU immigration applicants choose to be consultants, independent teachers, translators, interpreters and coaches, there are still several who either need to create a corporation to comply with their chosen passeport talent sub-category, or their activities fit the artisan – commerçant status. This latest change is radical and cannot be overlooked.

www.inpi.fr/formalites-entreprises/creer-son-entreprise 
www.autoentrepreneur.urssaf.fr/portail/accueil.html

REGISTERING AS SELF-EMPLOYED AND GETTING HEALTH COVERAGE
For at least a year I have observed the poor performance of the procedure for getting French public health coverage after registering self-employed status for the first time. Formerly, URSSAF would send a letter asking for a file with passport, immigration ID, birth certificate and French banking information so as to create an account with the Caisse Primaire d’Assurance Maladie (CPAM) and start the procedure to obtain a French social security number. The file was sent to an office in Brittany, which dispatched the information to your local CPAM to implement the health coverage policy and to INSEE, the French statistics agency, for the creation of the French social security number. For years, the procedure was somewhat slow but predictable and thus reliable.

Now the system is so slow as to be dysfunctional, so it is no longer feasible to rely only on it to obtain coverage. Instead, once the letter from the URSSAF Brittany office in Auray is sent, you have to be proactive and submit the registration file to the local CPAM as well. Eventually, there may be two files active. But if you inform this Brittany office when it asks for the file that one registration has already been completed, you can avoid having two files in process at the same time. Keep in mind that this is the procedure to set up CPAM public coverage. URSSAF takes care of setting up the account to which income is declared and social charges paid.

DECLARING USE OF FRENCH REAL ESTATE
The French tax office’s recent announcement that property owners now have to complete an extra filing about their holdings took me by surprise because I first got the information from a client who reads The Local France, an expat website: www.thelocal.fr/20230126/new-french-property-tax-declaration-your-questions-answered .

I did some research and found the information issued by the French administration, the most reliable source. Since January 1st, 2023, all owners of French real estate have had until July 1st, 2023, to submit a report on how the property is used. The official reason is simply that the administration wants an improved picture of the usage of French real estate. But I can see that how a property is used can indicate discrepancies in the income declared to France (or the lack of it). It can also show if it is used for Airbnb, facilitating checks on whether the rental meets the French legal requirements and how many non-residents foreigners use the place. I won’t try to read from these observations what the next step might be, aside from these basic legal and fiscal issues.

Here is a partial translation of the message found on the official website.

WHAT INFORMATION MUST BE DECLARED VIA THE NEW ONLINE SERVICE “MANAGE MY PROPERTIES”?
This new obligation is carried out through the online service available on impots.gouv.fr in your personal space under the “Real estate” tab [“Biens immobiliers”].

The following information must be provided by July 23rd, 2023:

How the premises are occupied (by you or tenants).
Whether it is a main residence, a secondary residence, rented, occupied free of charge, or unfurnished and unoccupied.

Who the tenants are (for a private individual: last name, given name, date of birth, place of birth; for a corporation: name of the manager, SIREN).

When it is used by the owners (beginning and end of the period of occupation).

In the case of seasonal rentals: when it is rented and who manages the property (either the owner or, if it is professionally managed, the manager’s SIREN or that of the owner if applicable).

The amount of the monthly rent (optional).

Gathering this information will help the administration calculate the habitation tax on secondary residences, the tax on vacant premises (TLV) and the housing tax on vacant accommodation (THLV).

This is a mandatory declaration (article 1770 terdecies of the CGI). Failure to declare will result in fines of 150€ per premise.

This topic is also addressed in the second Q&A of this column.

www.impots.gouv.fr/particulier/questions/quelles-informations-sont-declarer-le-nouveau-service-en-ligne-gerer-mes www.impots.gouv.fr/formulaire-de-creation-dacces-lespace-particulier-non-residents

www.impots.gouv.fr/particulier/questions/quelles-informations-sont-declarer-le-nouveau-service-en-ligne-gerer-mes 
www.impots.gouv.fr/formulaire-de-creation-dacces-lespace-particulier-non-residents

Best regards,