According to the latest edition of the Organisation for Economic Co-operation and Development (OECD) report on revenues published on Thursday, December 3, the France is the country with the second-highest compulsory tax rate, at 45.2 % in 2014, after France. Denmark (50.9 %), and ahead of the Belgium (44.7 %), a "top 3" identical to that of 2013.
This situation is due in particular to the rising tax burden on households. A trend that is not unique to France, but one that makes it hard to hear the message about tax cuts hammered home by the majority since 2014. In terms of both taxation andjob - the unemployment rate, at 10.6 % in the third quarter, has reached its highest level since 1997 - government and presidential communications are struggling to keep up with the times. convince.
Tax preference, a history French
While France's rate of compulsory levies, up 0.2 points over the year, appears much higher than the average tax pressure of 29 OECD countries (34.4 %), the increase in tax pressure is general in advanced economies (+ 0.2 points in 2014): "Tax revenues were severely impacted by the 2008-2009 crisis and have been steadily recovering since then. reach at a higher level than before the crisis", notes David Bradbury, head of the organization's tax statistics department.
France's preference for taxes is nothing new: in 1965, when the OECD launched its publication, France was already the runner-up in terms of compulsory deductions (taxes and social security contributions) but behind theAustriawith a rate of 33.6 %, 8.8 points higher than the average for advanced countries. And, between 1965 and 2014, the tax burden has never been sustainably reduced.
Whose fault was it in 2014? The report points out that social security contributions are the main culprit. Social contributions account for 37 % of compulsory deductions, compared with an average of 26.1 % in other countries. And their share of gross domestic product (GDP) is 16.7 %, including 11.3 points for those paid by employers. And this despite the introduction of the Tax Credit for Competitiveness and Employment (CICE), which was ramped up in 2014 and resulted in a tax cut of almost 6.5 billion euros for companies.
Transferring the tax burden
One of France's exceptions is the low proportion of revenue from corporate income tax. companys (IS) and value-added tax (VAT). France derives only 6 % of its revenue from corporate income tax, compared with an average of 22 % in the rest of the OECD. The proportion of revenue collected from title of this tax was reduced from 2.9 % to 2 % of GDP between 2007 and 2014. Similarly, with VAT at 20 %, France's sales tax is the lowest in the world. consumption relatively lower than its neighbors: in this respect, it ranks 19th.
The OECD confirms what taxpayers are feeling: the tax burden on individuals in France has risen particularly sharply since the crisis, starting in 2011. Between 2007 and 2014, theincome tax has risen from 7.2 % to 8.4 % of GDP. As a result, its share of tax revenue rose from 17.1 % to 18.6 %, while at the same time that of corporate income tax fell. There has thus been a transfer of tax pressure from SMEs and companies to households.
"Urgent action is needed to ensure that companies bear their fair share of the burden".
The report shows that corporate tax revenues are declining in all OECD countries. They fell from 3.6 % of GDP in 2007 to 2.8 % in 2014, while at the same time income tax rose from 8.8 % to 8.9 % and VAT from 6.5 % to 6.8 %.
"The vast majority of tax increases since the crisis, in the form of higher social security contributions, value-added tax and income tax, have been passed on to the public".sums up Pascal Saint-Amans, director of the Center from policy and Tax Administration of the OECD. Before adding: "This situation highlights the urgent need for action to go to to ensure that companies bear their fair share of the burden."