{"id":194,"date":"2015-12-04T14:45:04","date_gmt":"2015-12-04T13:45:04","guid":{"rendered":"http:\/\/vivreauportugalconsulting.com\/?p=194"},"modified":"2015-12-04T15:01:39","modified_gmt":"2015-12-04T14:01:39","slug":"la-pression-fiscale-atteint-des-sommets-en-france","status":"publish","type":"post","link":"https:\/\/vivreauportugalconsulting.com\/en\/la-pression-fiscale-atteint-des-sommets-en-france\/","title":{"rendered":"Tax pressure reaches new heights in France"},"content":{"rendered":"<p class=\"p1\"><span class=\"s1\"><b>According to the latest edition of the Organisation for Economic Co-operation and Development (OECD) report on <\/b><b>revenues<\/b><b> published on Thursday, December 3, the <\/b><b>France<\/b><b> is the country with the second-highest compulsory tax rate, at 45.2 % in 2014, after France. <\/b><b>Denmark<\/b><b> (50.9 %), and ahead of the <\/b><b>Belgium<\/b><b> (44.7 %), a \"top 3\" identical to that of 2013.<\/b><\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">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 and<span class=\"s4\">job<\/span> - 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. <span class=\"s4\">convince<\/span>.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Tax preference, a <\/b><b>history<\/b><b> French<\/b><\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">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): <i>\"Tax revenues were severely impacted by the 2008-2009 crisis and have been steadily recovering since then. <\/i><span class=\"s4\"><i>reach<\/i><\/span><i> at a higher level than before the crisis\", <\/i>notes David Bradbury, head of the organization's tax statistics department.<\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">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 (<span class=\"s4\">taxes<\/span> and social security contributions) but behind the<span class=\"s4\">Austria<\/span>with 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.<\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">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 <span class=\"s4\">companies<\/span>.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Transferring the tax burden<\/b><\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">One of France's exceptions is the low proportion of revenue from corporate income tax. <span class=\"s4\">company<\/span>s (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 <span class=\"s4\">title<\/span> 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. <span class=\"s4\">consumption<\/span> relatively lower than <span class=\"s4\">its<\/span> neighbors: in this respect, it ranks 19th.<\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">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, the<span class=\"s4\">income tax<\/span> 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.<\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">\"Urgent action is needed to ensure that companies bear their fair share of the burden\".<\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">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 %.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\"><b>Small consolation<\/b><\/span><\/p>\n<p class=\"p3\"><span class=\"s1\"><i>\"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\".<\/i>sums up Pascal Saint-Amans, director of the <span class=\"s4\">Center<\/span> from <span class=\"s4\">policy<\/span> and Tax Administration of the OECD. Before adding: <i>\"This situation highlights the urgent need for action to <\/i><span class=\"s4\"><i>go to<\/i><\/span><i> to ensure that companies bear their fair share of the burden.\"<\/i><\/span><\/p>\n<p class=\"p3\"><span class=\"s1\"><a href=\"http:\/\/www.lemonde.fr\/economie\/article\/2015\/12\/04\/la-pression-fiscale-atteint-des-sommets-en-france_4824112_3234.html#2XR0MwHQdCYDJTey.99\" target=\"_blank\" rel=\"noopener\">Read more<\/a>\u00a0<\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>According to the latest edition of the Organisation for Economic Co-operation and Development (OECD) report on public revenues, published on Thursday December 3, France is the country with the second-highest rate of compulsory deductions.<\/p>","protected":false},"author":1,"featured_media":210,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","neve_meta_reading_time":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-194","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fiscalite-des-francais-au-portugal"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/vivreauportugalconsulting.com\/wp-content\/uploads\/2015\/12\/presion-fiscal.png?fit=1194%2C994&ssl=1","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/vivreauportugalconsulting.com\/en\/wp-json\/wp\/v2\/posts\/194","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vivreauportugalconsulting.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vivreauportugalconsulting.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vivreauportugalconsulting.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vivreauportugalconsulting.com\/en\/wp-json\/wp\/v2\/comments?post=194"}],"version-history":[{"count":0,"href":"https:\/\/vivreauportugalconsulting.com\/en\/wp-json\/wp\/v2\/posts\/194\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vivreauportugalconsulting.com\/en\/wp-json\/wp\/v2\/media\/210"}],"wp:attachment":[{"href":"https:\/\/vivreauportugalconsulting.com\/en\/wp-json\/wp\/v2\/media?parent=194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vivreauportugalconsulting.com\/en\/wp-json\/wp\/v2\/categories?post=194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vivreauportugalconsulting.com\/en\/wp-json\/wp\/v2\/tags?post=194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}