The figure is staggering : 1038 billion euros. This is the sum that reached in 2017, the compulsory levies in France, according to a report for the parliamentary spotted by Les Echos. For the first time, the collection of taxes and contributions pass the bar of € 1 000 billion, due to an increase of 43.3 billion compared to the previous year.
Despite the tax cuts decided by the government, the total amount collected is expected to continue to increase to reach 1 057 billion euros in 2018, and 1 070 billion in 2019. According to the rapporteur of the budget Joël Giraud (LREM), which published the document, this increase is linked to the good health of the economy.
The taxes on their “highest point”
In excess of 1 000 billion of the levies, the taxes reached 45.3 per cent of the gross domestic product (GDP), their “highest point” according to the report of Joël Giraud. Since 2002, they have increased by 368,5 billion euros.
In the document, we learn that 37% of samples correspond to the contributions to social security, and 63% in the other compulsory levies and taxes.
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While the sum of the levies will continue to increase, the decline of the housing tax, the abolition of the wealth tax or the introduction of the levy one-time lump sum (or “flat tax”) would be expected to decrease the importance of the samples to be 45% of GDP in 2018, and 44.2% in 2019.
According to Joël Giraud, the increase in removals is in fact a “spontaneous evolution”, linked to economic growth. When the economy is healthy, wages and consumption increase, which allows the income tax and VAT to follow this evolution.
With a projected growth to 1.7% by the government over the next two years, the State should continue, despite the decline of certain taxes, to garner more revenue. The increase is in effect estimated by the rapporteur to 29.8 billion euros in 2018, and then 31.9 billion in 2019, while the tax reforms will lower the contribution of € 10.4 billion this year, and then 19.3 billion in 2019.
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Remains to be seen whether the economic growth and tax cuts will be felt on the household. While the executive seeks tax cuts of 6 billion euros for households, the French Observatory of economic conditions (OFCE) predicts rather $ 3.5 billion, says Le Figaro. The Institute of public policy table on an increase in the purchasing power of 1.2 billion euros, since this will be according to him rather the households of the middle classes and the wealthy who will benefit from new tax reforms.
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It is now up to mps to address these issues during the review of the finance law project that begins this Monday. The report of Joël Giraud will serve as support to inform their consideration of the draft law. The debates will continue up to Christmas and promise to be heavily : more than 2000 amendments have already been filed.