A member of the majority wants “everyone” to pay the tax on the income. A device complicated to implement.

Some see it as a French particularity. In france, the social crisis of magnitude sometimes induce policies to compete with tax solutions to address them. The last date for income tax on the income. In an interview with the Parisien, member of parliament of The Republic on the Allier Bénédicte Peyrol has said it wants “everyone pays taxes from the first euro”. To achieve this, the member of the finance committee of the national Assembly wishes to “review the entire tax system” and “review slices” of taxation.

This is a real arlésienne policy, invoked on multiple occasions in recent years, to the left and to the right. In his presidential program of 2017, Jean-Luc Mélenchon promised, for example, to generalize the income tax (IR) making it very progressive, thanks to the creation of 14 tax brackets. At the end of 2013, the socialist Prime minister Jean-Marc Ayrault launched the consultations (which have never been implemented) on the redesign of the French tax system, so as to make it more fair, including merging the IR and the generalized social Contribution (CSG).

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“everyone pays”

“This is an old idea which comes regularly,” sighed the deputy centrist Charles de Courson, a connoisseur of the tax issue. “Several members of parliament had resumed, considering that it is not normal that less than half of the homes in the French taxation are subject to the IR.” In fact, at the present time, a little more than 43% of the families paying the progressive income tax, which represents around 72 billion euros of revenue for the State. In the early 1980s, the rate was 64%. It has continued to decline since, with a few lift point.

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“Usually, we start the backtracking presidential with a rate of coverage to the IR, which is more than 50%, and then gradually we calm the people’s anger by raising the thresholds, we arrive at the figure that we have today. Although it must be recognized that it is particularly low”, regrets the elected group Freedoms and Territories. And to add that ‘ tax ‘universal’, it already exists, since 80% of the French pay the CSG”. A tax which, to him, reports today about 115 billion euros per year to the State, as noted by the site toutsurmesfinances.com.

the ministry of Economy and Finance, it also reminds us that “everyone pays taxes ‘from the first euro’ if one takes into account the CSG and the VAT”. “In his interview, Bénédicte Peyrol appears to reduce the tax to the income tax. It’s always the same debate : all the French pay compulsory levies on other incomes,” says one in the entourage of Gérald Darmanin, minister of the Action and of the public Accounts. One thing is certain, the proposal of the mp is not the order of the day : “Nothing is investigated nor screened at Bercy.”

direct Link between the French and the State

Contacted by The Express, the mp LREM keeps his words, while pointing out that it is a “topic of discussion”. “The IR represents a small proportion of the revenues of the State, while it is the tax that, more than any other, creates a direct link between the French and the State. The debate over our tax system is imposed on us, now. We must ask the question of the meaning of the tax”, says Bénédicte Peyrol, well aware that “the idea is not new”.

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To such a point that, for Republicans, it is recalled that proposals had been “regularly” made in this direction over the years. Former president of the finance commission of the Palais-Bourbon, Gilles Carrez is alarmed at the fact that “the rate of French who pay the IR has declined dangerously in recent years.”

“of 43%, it is no longer reasonable. The result is that it was one of the taxes on the income of the most concentrated in the world : about 37 million households French tax, 10% pay for 70% of the IR and, if we zoom a bit, the 0.1% most wealthy pay 10%. This puts us in a situation of very high fragility, where as soon as several big income, leaving the territory, Bercy, there are significant losses,” says the mp, the LR of the Val-de-Marne. To reverse the trend, Gilles Carrez believes that the share of taxpayers subject to the IR should be greater than 50%.

“No sense if we keep the” CSG

According to Xavier Timbeau, director of the French Office of economic conditions (OFCE), the generalization of the IR to all tax households “has no meaning if we keep the” CSG. “The collection at the source, initially, was designed as a step prior to the fusion of the CSG and the income tax”, he said, pointing a finger at the famous reform abortive the time Ayrault. “If we assimilated the CSG to an IR, it would lead to the observation that all the world, in fact, pay this IR”, pursuit of their acit the analyst.

This is where the hard part starts, however, since, in order to proceed with this merger, it should be change the nature of one or the other of these two levies. “Today, the income tax is levied on the basis of the household, it is ‘familialisé’, unlike the CSG, it is individualized. It would therefore be necessary to choose a common method. However, if one individualizes the IR for example, it might generate winners and losers, especially in families where you have an inactive spouse,” warns Xavier Timbeau.

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At the Meeting, the opposition made its gorges hot. “The link tax is part of the link of citizenship. Soon, half of all households will pay neither IR, or property tax, is a threat to the LR Gillez Carrez. And I have always observed as a mayor, when you don’t pay tax, you always ask for more.” Charles de Courson preferred to emphasise the inconsistency of the majority. “If I wanted to make the evil spirit, I would ask this question to my peers in power : why, if your goal is further subject to French income tax, do you want to remove the property tax?”, is he asks. “This is one of the taxes the more responsabilisants and 80% of taxpayers were paying him.”