France, European champion of obligatory deductions | EUROtoday
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Sin line with a research by François Ecalle revealed on the Fipeco web site, the speed of obligatory deductions (taxes and social contributions) was, in France, larger by 5.4 factors of gross home product (GDP) in 2022 than that of the euro zone ( 46.2% versus 40.8%) and 6 factors to that of the European Union (46.2% versus 40.2%).
This fee was additionally at 45.7% in 2016, earlier than Emmanuel Macron's first presidential time period. “Despite the measures taken to reduce it, the rate of compulsory deductions increased by 0.5 point of GDP in France from 2016 to 2022,” notes François Ecalle.
In element, obligatory labor deductions represented 23.4% of GDP in France in 2022 in comparison with a median of 20.9% within the euro zone and 20.3% within the European Union (EU). They present a drop of 0.6 factors of GDP since 2016, which nevertheless didn’t stop France from transferring, throughout this era, from second to first place within the EU.
Germany far behind
It is now forward of Sweden, the place the speed of obligatory labor deductions has fallen additional and stands at 23.2% of GDP. France additionally occupies first place when it comes to obligatory contributions paid by employers: 12.3% of GDP in comparison with 8.4% on common within the euro zone and 6.9% in Germany.
READ ALSO A worldwide debt of 100,000 billion {dollars}Mandatory levies on capital represented, for his or her half, 11.2% of GDP in France in 2022, in comparison with 10.3% in 2016 and eight.9% on common within the EU. In this space too, France ranks first and is forward of Luxembourg (11.1% of GDP), Italy (10.8%) and Belgium (10.6%). With 7.8% of GDP, Germany comes far behind.
Finally, obligatory levies on consumption represented 11.5% of GDP in France in 2022, in comparison with 10.8% on common within the euro zone. At this stage, France now occupies 14e place out of 27 throughout the EU (the 16e in 2016), but in addition the 25e place on 27 for the share of those taxes within the whole obligatory deductions.
https://www.lepoint.fr/economie/la-france-championne-d-europe-des-prelevements-obligatoires-03-04-2024-2556731_28.php